The Supreme Court has sought a response from the Centre on a petition filed by cryptocurrency investors seeking comprehensive relief in the alleged ₹1.3 lakh crore GainBitcoin scam. The investors have approached the court demanding stronger investigation, recovery of assets and formation of a specialised committee to examine one of the country’s biggest alleged cryptocurrency fraud cases.
A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana issued notice to the Centre while hearing a plea filed by Gautam Mahendrakumar Chordia and other investors. The petition has sought coordinated action involving investigating agencies, technical experts and government representatives to address the complexities involved in the case.
Alleged cryptocurrency Ponzi scheme operated between 2015-18
According to the petition, the GainBitcoin scheme allegedly operated between 2015 and 2018 and was structured as a multi-level marketing model. The investors claimed that the scheme promised assured returns of 1.8 Bitcoins against every Bitcoin or equivalent investment made by participants.
The plea alleged that the scheme was allegedly controlled by Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj and Mahender Bhardwaj. It further stated that investigations by agencies indicated the involvement of a network of agents operating across India and abroad.
The companies allegedly linked to the scheme include Variabletech Pte Ltd, Singapore, and Radox Infotech Pvt Ltd. The petition claimed that more than one lakh investors were allegedly attracted through promises of high returns.
Investors approached agencies after alleged fund diversion
The petition stated that after investors allegedly failed to receive promised returns and suspected diversion of funds, multiple FIRs were registered across different states in 2018. Subsequently, the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) joined the investigation at different stages.
The Supreme Court had earlier taken note of the seriousness of the matter and cancelled bail granted to the accused in 2023. The court also directed the CBI to consolidate FIRs where required to ensure effective investigation.
However, the investors have claimed that despite the passage of more than eight years, only a limited amount of assets has been seized compared to the alleged scale of the fraud.
Petition highlights challenges in asset recovery
According to the plea, seized assets so far represent less than one per cent of the total alleged scam amount. Investors have argued that the nature of cryptocurrency transactions, international fund movement and digital evidence require specialised investigation methods.
The petitioners have also alleged that some accused persons are facing separate cases related to attempts to obstruct enforcement officials and assist other accused individuals in avoiding legal action.
With concerns over delayed recovery, investors formed the “Bitcoin Investors Protection Society” and moved the Supreme Court seeking intervention.
Demand for Special Investigation Team
The investors have requested the formation of a Special Investigation Team (SIT) or a specialised committee comprising retired judicial officers, representatives from investigating agencies, ministry officials and technical experts.
The proposed team would focus on digital investigation, international cooperation, identification and recovery of assets, victim compensation and development of protocols for handling large-scale cryptocurrency-related crimes.
The petition has also sought steps for the arrest of absconding accused persons and consolidation of various investigations pending across different jurisdictions.
Cyber expert warns about evolving digital fraud risks
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh said that cryptocurrency-related fraud cases require a combination of financial investigation, cyber forensics and international cooperation because digital assets can move rapidly across borders.
He said investigators need advanced blockchain analysis, transaction tracking mechanisms and coordinated action between law enforcement agencies to effectively trace illegal fund flows and recover victims’ money.
Supreme Court intervention awaited
The Supreme Court’s notice to the Centre marks a significant development in the long-running case. The investors have argued that a specialised approach is necessary due to the scale and technical complexity of the alleged fraud.
The government’s response will determine the further course of proceedings. Meanwhile, investigation agencies continue to examine financial transactions, digital evidence and assets allegedly linked to the GainBitcoin network. The allegations against the accused are subject to judicial proceedings, and the final outcome will depend on evidence presented before the court.
