India’s biggest scam is continuing to unravel to the public as a murkier of scammers stealing people nonstop for investment on a that promising a huge return on .

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

is the scam?

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

He owns and runs cryptocurrency operations, but his 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 for bringing in other Cryptocurrency . At , had around 100,000 Cryptocurrency investors on the network and managed to set up as an in the by writing books on cryptocurrencies and procuring celebrity endorsements, including by Shetty herself.

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

Soon, complaints began pouring in from Cryptocurrency investors weren’t receiving the promised returns. Unable to the company and withdrawing their Cryptocurrency investments, a few of launched an online 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  . Investigations into Bhardwaj’s transactions and the Cryptocurrency scam are 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 ’s company, Viaan Industries.

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

is to clarify that I no involvement connection in the 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 . But to non-payment, his contract was terminated. I 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 activities for .

Tip of the iceberg

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

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

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