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

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

is the scam?

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

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

Bhardwaj also launched his own first Cryptocurrency coin offering (ICO), similar to a first 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 and withdrawing their Cryptocurrency investments, a few of launched an online campaign against Bhardwaj and his firm in April 2017.

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

does have 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 , Viaan Industries.

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

is to clarify that I have 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 a team in the poker league and got into a contract with . 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 found in murky waters. In 2013, Kundra, owned the Indian Premier League cricket team, Rajasthan Royals, was caught in a betting and barred from any cricket-related  for .

Tip of the iceberg

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

Initially, were carried out at a smaller scale, involving criminals hacking into 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 when 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 repeatedly.

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