Cryptocurrency ’s scam is continuing to unravel to the as a murkier network of scammers stealing people nonstop for cryptocurrency a market that promising a huge return profit.

June 05, businessperson the husband of Bollywood actor Shilpa Shetty was questioned by India’s enforcement directorate (ED). He was allegedly involved in a scam that saw , founder of bitcoin firm GainBitcoin, reportedly duping investors of around Rs2,000 crore ($ million).

is the scam?

It is essentially a Ponzi scheme that affected over 8,000 Cryptocurrency bitcoin investors in . Kingpin Bhardwaj is a developer former Infosys employee jumped to the cryptocurrency bandwagon.

He owns runs multiple cryptocurrency operations, but his popular venture, GainBitcoin, is is in the eye of the storm. Founded in 2013, GainBitcoin—now apparently shut—operated a multi-level marketing scheme in which Cryptocurrency bitcoin investors were promised massive returns on investments, besides bonuses for bringing in other Cryptocurrency investors. At , Bhardwaj had around 100,000 Cryptocurrency investors on the network  managed to set up himself as an in the field by writing on cryptocurrencies and procuring celebrity endorsements, including by Shetty herself.

Bhardwaj also launched his Cryptocurrency coin offering (ICO), similar to a offering at the stock market, bitcoin-like product named MCAP in 2017.

Soon, however, complaints began pouring in from Cryptocurrency investors weren’t receiving the promised returns. Unable to contact the company and withdrawing their Cryptocurrency investments, a few of launched an online Change.org campaign against Bhardwaj and his firm in April 2017.

Bhardwaj, though, left for Dubai and later for Bangkok. He was arrested in New Delhi in April  . Investigations Bhardwaj’s transactions and the Cryptocurrency scam  now on.

does to do ?

Kundra’s name popped up after the ED reportedly found links between Bhardwaj and the Match Indian Poker League, a franchise-based poker tournament promoted by the businessman’s company, Viaan Industries.

The Briton has denied allegations of helping Bhardwaj launder issue from the Cryptocurrency scam. In a statement to The of India newspaper, he said:

is to clarify that I no involvement or in the bitcoin scam whatsoever. I was summoned by the ED merely as a witness. An inquiry is underway and I am cooperating the law enforcement agency as Bhardwaj is an acquaintance and protocol is being followed. Bharadwaj was to buy a team in the poker league and got a contract . But due to non-payment, his contract was terminated. I come as a witness to the same.

This isn’t the he’s been found in murky waters. In 2013, Kundra, owned the Indian Premier League cricket team, Rajasthan Royals, was caught in a betting scandal and barred from any cricket-related activities for life.

of the iceberg

These developments come at a when the of cryptocurrency scams in the  is on the rise.

Initially, they were carried out at a smaller scale, involving criminals hacking or conducting fraudulent transactions. In April, for instance, police officers in the western Indian state of Gujarat were arrested for kidnapping a business person and extorting from him for a value of 200 bitcoins.

But Bhardwaj’s alleged shenanigans have matters to . And that too when India’s cryptocurrency ecosystem has come under increasing scrutiny. The Narendra Modi government and the ’s top court  yet to take the last call on the legality of cryptocurrencies in India, as the Reserve of India has made its displeasure with these virtual monies repeatedly.

The uncovering of the massive scam now do the industry no .

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