The investigation into cryptocurrency platform GainBitcoin, has progressed significantly. As it turned out, the creators of GainBitcoin used the well-known Ponzi investment scheme to get other people's money. According to the authorities, the police have "irrefutable evidence" that directly proves fact of money laundering by GainBitcoin platform.
The edition of the Indian Express reports that the police of the Indian state of Gujarat is actively involved in the investigation of the case of a multi-million dollar scam. A series of interrogations by Amit Bharadwaja, the creator of the GainBitcoin platform, helped the police understand how such a large-scale operation was carried out. In addition, during the investigation it became clear in what ways illegally acquired funds were withdrawn to China, Hong Kong and the UAE. It is noteworthy that until now Bharadwaja was unsuccessfully questioned in five Indian cities, however, only a dedicated team of Pune was able to get the important information out of him and seven other partners.
According to the police, Bharadwaja and his assistants have developed a complex system of multi-level marketing (MLM). With this system, they attracted investors who transferred them Bitcoins in exchange for promises of high profits. The received funds were subsequently redirected to the largest international markets. In total, about 8 thousand investors have suffered from the activities of GainBitcoin, who invested about 300 million dollars in the platform.
The first statement of fraud on the part of GainBitcoin was recorded in July 2017. The deceived investor reported that he invested 0.1 BTC in the GainBitcoin platform after he was promised monthly payments at a rate of 12% for a year and a half. At the same time, the investor was offered to attract new investors, for which additional fees were also provided. However, the GainBitcoin platform never paid dividends, and in the case of claims, did not respond to messages and calls from investors.
About the crimes committed Bharadwaja and his assistants, the public learned after the spring of 2018 vs platform GainBitcoin had filed multiple lawsuits in different cities.