Mumbai | In a significant step forward in the investigation of one of India’s largest cryptocurrency-linked Ponzi scams, the Enforcement Directorate (ED) has sought judicial assistance from UAE authorities to confirm the attachment of assets valued at ₹68.66 crore (AED 28.4 million). These properties are allegedly linked to a massive Bitcoin-based fraud estimated at ₹6,606 crore.
The move marks a crucial advance in dismantling the international financial network used to divert, layer, and conceal investor funds generated through the scheme.
UAE-Based Commercial Properties Under Scanner
According to ED, the assets include high-value commercial properties located in prime business districts across the United Arab Emirates. These were provisionally attached between September 2018 and December 2022 after investigators established links to laundered proceeds of crime.
On 29 November, a special PMLA court authorised ED to issue a judicial requisition to UAE authorities, seeking formal assistance to enforce the attachment under Indian law. Officials stated that the properties were acquired using funds siphoned off through complex, multi-jurisdictional crypto transactions.
At the Centre of the Probe: Variable Tech Pte Ltd and Amit Bhardwaj
The case originates from allegations against Singapore-registered Variable Tech Pte Ltd, whose former managing director Amit Bhardwaj (deceased) and his associates allegedly raised nearly 80,000 bitcoins from unsuspecting investors between 2016 and 2017.
Across India, 35 FIRs were registered accusing the group of luring investors with promises of:
- Bitcoin mining operations
- Monthly returns of up to 10%
- Assured payouts backed by supposed “global crypto investment expertise”
ED findings suggest that instead of legitimate mining, the majority of the cryptocurrency was diverted and layered for illicit financial gains.
Scheme Collapsed in Late 2017 as Fund Layering Intensified
The Ponzi operation is believed to have collapsed around November 2017, when one Bitcoin was trading at approximately ₹8.25 lakh. Investigators state that investor bitcoins were routed through:
- Multiple domestic and international crypto wallets
- High-frequency transfers
- Intricate chains of transactions
These mechanisms were designed to mask fund origins and obscure the money trail. ED believes portions of the crypto assets were converted into fiat currencies abroad and used for:
- Property purchases
- Investments in overseas companies
- Lavish personal expenditures
International Corporate Network Under ED Scrutiny
ED has identified links to eight foreign entities operating from Hong Kong, Estonia, and other jurisdictions, allegedly used to route and conceal illicit funds. One key entity, AB Holdings and Investments Ltd (UAE), was reportedly incorporated by Bhardwaj to facilitate property acquisitions in the region.
So far, the agency has filed:
- Main chargesheet: June 2019
- Supplementary chargesheet: February 2024
Together, these names 16 accused individuals and entities.
