Crackdown Against Bitcoins: Raj Kundra Quizzed In Rs 2,000 Crore Cryptocurrency Fraud Probe

NDTV Profit Team

05 Jun 2018, 06:38 PM IST

Fraudsters launched their own cyrptocurrency called the Money Trade Coin (MTC)

Shilpa Shetty's husband Raj Kundra was grilled by Enforcement Directorate (ED) in connection with a money laundering probe relating to Rs 2,000 crore fraud wherein 8,000 investors allegedly lost money. Raj Kundra was grilled in connection with money laundering probe relating to bitcoin transaction case. The case pertains to the prevention of money laundering act (PMLA) case filed against the bitcoin-based investment website GainBitcoin, founder Amit Bhardwaj and eight others.

As per the allegation, about 8,000 investors lost about Rs 2,000 crores by transacting in this scheme.

Amit Bhardwaj was allegedly involved in ventures that include GainBitcoin, GBMiners, MCAP and GB21. The ED had filed its case based on an FIR of the Maharashtra Police in this case and the Pune Police arrested Bhardwaj and his brother Vivek from Delhi earlier.

It is alleged that Amit Bhardwaj, his accomplices allegedly duped investors to the tune of Rs 2,000 crore in Mumbai, Pune, Nanded, Kolhapur and other places in the state.

Rs 500 crore cryptocurrency racket busted in MTC case

In a separate case, Thane police busted online cryptocurrency racket. As per the police complaint, a group of persons had coaxed hundreds of gullible investors to invest Rs 500 crore with the promise of good returns. The fraudsters had launched their own cyrptocurrency called the 'Money Trade Coin (MTC)',

Around 25,000 people fell prey to the accused and invested money in the company.

Thane police commissioner ParamBirsingh said, the police seized 53 laptops, rubber stamps and fabricated documents during the raids on the company's premises on the Ghodbunder Road in Thane and in suburban Vikhroli in the adjoining Mumbai on Monday.

In an RBI circular issued on April 6, the central bank said that all banks are meant to severe ties with the entities that deal in cryptocurrency.

Also Read: To Evade RBI's Ban On Cryptocurrencies, Exchanges Keen To Run Operations Abroad

Even prior to the April 6 circular, the Reserve Bank of India (RBI), on several occasions, cautioned the cryptocurrency users, traders and holders of digital currencies. The first RBI warning was sent in December 2013, the second in February 2017 while the last one in December 2017.