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

On June 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 , founder of bitcoin firm GainBitcoin, reportedly duping of around Rs2,000 crore($300 million).

is the scam?

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

He owns runs 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 Cryptocurrency bitcoin were promised massive returns on investments, besides bonuses for bringing in other Cryptocurrency . At point, had around 100,000 Cryptocurrency investors on the network managed to set up as an in the by writing on cryptocurrencies and procuring celebrity endorsements, by Shetty herself.

Bhardwaj also launched his Cryptocurrency coin offering (ICO), similar to a public 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 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 this year. Investigations into Bhardwaj’s transactions and the Cryptocurrency scam are now on.

does Raj Kundra to do this?

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 money issue from the Cryptocurrency scam. In a statement to The Times of India newspaper, he said:

This is to clarify that I no involvement or connection 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 into a contract us. But to non-payment, his contract was terminated. I come as a witness to the same.

This isn’t the he’s been 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 when the number of cryptocurrency scams in the  is on the rise.

Initially, they were carried out at a smaller scale, involving criminals hacking into or conducting fraudulent transactions. In April, for instance, nine 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 taken matters to . And that too when India’s cryptocurrency ecosystem has come under increasing scrutiny. The Narendra Modi government and the ’s top court are 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 no favors.