Cryptocurrency India’s scam is continuing to unravel to public as a murkier network of scammers stealing money nonstop cryptocurrency investment on a market that promising a huge on .

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

What is scam?

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

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

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

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

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

What does Raj Kundra have to do with ?

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 ’s , Viaan Industries.

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

is to clarify that I have no involvement or 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 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 he’s been found in murky waters. In 2013, Kundra, who owned the Indian Premier League cricket team, Rajasthan Royals, was caught in a betting and barred from any cricket-related activities for life.

of the iceberg

developments come at a the number of cryptocurrency scams in the country is on the rise.

Initially, were carried out at a smaller scale, involving criminals hacking peoples’ 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 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 virtual monies known repeatedly.

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