Cryptocurrency India’s biggest scam is continuing to unravel to the public as a murkier network of scammers stealing nonstop for cryptocurrency a that promising a huge .

05, businessperson Raj Kundra the husband of Bollywood actor Shilpa Shetty was questioned by India’s enforcement directorate (ED). He was allegedly involved in a scam that saw Amit Bhardwaj, 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 8,000 Cryptocurrency bitcoin investors in India. Kingpin Bhardwaj is a developer and former Infosys employee jumped to the cryptocurrency bandwagon.

He owns and runs multiple cryptocurrency operations, but his most 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 one point, Bhardwaj had around 100,000 Cryptocurrency investors on the network and managed to set up himself as an in the by writing on cryptocurrencies and procuring celebrity endorsements, including by Shetty herself.

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

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

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

does Raj Kundra have to do with ?

Kundra’s popped up after the ED reportedly found links between Bhardwaj and the Match Indian Poker League, a franchise-based poker tournament promoted by the ’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 have no involvement in the whatsoever. I was summoned by the ED merely as a witness. An inquiry is underway and I am cooperating with the law enforcement agency as Bhardwaj is an acquaintance and protocol is being followed. Bharadwaj was to a team in the poker league and got into a contract with us. But due to non-payment, his contract was terminated. I have come as a witness to the same.

This isn’t the first time he’s been 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  for life.

Tip of the iceberg

These developments come at a time the of cryptocurrency in the country is on the rise.

Initially, were carried out at a smaller scale, involving criminals hacking into 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 taken matters to another . And that too India’s cryptocurrency ecosystem has come under increasing scrutiny. The Narendra Modi government and the country’s court  yet to take the last call on the legality of cryptocurrencies in India, even as the Reserve of India has made its displeasure with these virtual monies known repeatedly.

The uncovering of the massive scam now do the no .