The Enforcement Directorate (ED) in India has turned its investigative lens on Raj Kundra, a well-known businessman and husband of Bollywood actress Shilpa Shetty, in connection with an $800 million cryptocurrency Ponzi scheme known as 'Gain Bitcoin.' Although Kundra is not the primary suspect, he is under scrutiny in a money laundering case linked to the scheme.

As part of the ongoing investigation, the ED has seized assets valued at approximately $12 million, including a Mumbai flat owned by Shilpa Shetty. Gain Bitcoin, founded in 2017 by Ajay Bhardwaj and Mahendra Bhardwaj, enticed investors with promises of a 10% monthly return paid out in Bitcoin, quickly accumulating a staggering $800 million.

Initially, the scheme operated by paying returns to early investors using funds from new participants. However, when attracting new investors became challenging, the payouts ceased. The organizers then converted the remaining funds into Bitcoin and concealed them in anonymous digital wallets.

Investigations have uncovered that Kundra received 285 Bitcoins, now valued at over $18 million, from Amit Bhardwaj, the mastermind behind the scheme. Allegedly, these tokens were designated for a Bitcoin mining project in Ukraine that never materialized, and reports suggest Kundra retains possession of them.

Both Kundra and Shetty vehemently deny any involvement with the scheme and express confidence that they will be exonerated once the investigation concludes.

The 'Gain Bitcoin' scandal emerges amidst heightened scrutiny by Indian regulators concerning illicit activities involving cryptocurrencies. Last month, the ED escalated its efforts by filing a charge sheet against 299 entities under India's stringent anti-money laundering laws, responding to a spate of frauds where investors were deceived by promises related to crypto mining ventures.

Moreover, the landscape of cryptocurrency scams in India is evolving, with fraudsters adopting new tactics. There has been a surge in scams where perpetrators pose as job recruiters, targeting unsuspecting job seekers with offers supposedly involving cryptocurrencies or related projects, only to defraud them.