Maharashtra elections: CBI begins probe into bitcoin ’scam’; six accused named in FIR

Maharashtra elections: The Central Bureau of Investigations (CBI) started an investigation into the Bitcoin-based Ponzi “scam” as the agency looks into the accused persons for allegedly collecting 80,000 bitcoins and diverting the funds worth ₹6,606 crore through nine overseas firms to purchase properties abroad, reported the news agency ANI on Wednesday, November 20.

CBI has registered the case against Amit Bharadwaj and Aman Bharadwaj and named four others accused in it. The agency also summoned auditing company employee Gaurav Mehta in connection with the case, reported the news agency PTI. 

On Wednesday, the Enforcement Directorate conducted searches at the Chhattisgarh premises of an audit company employee (Gaurav Mehta). The employee is allegedly linked to a Bitcoin transaction political case in Maharashtra over a money laundering investigation, said official sources aware of the development, reported the news agency.

Gaurav Mehta's house is in Raipur, Chhattisgarh is being covered under the provisions of the Prevention of Money Laundering Act (PMLA), they told the agency.

Former IPS officer Ravindranath Patil also took Mehta's name; Patil was arrested in a 2018 cryptocurrency "fraud" case currently being investigated by Pune Police, as per the report. 

Patil claimed that Mehta shared 10 voice notes with him on the Signal app, which had alleged audio clips of Sule, Patole, and IPS officers Amitabh Gupta (ex-Pune Police commissioner) and Bhagyashree Navtake, who was the DCP (cyber) in Pune when he was arrested.

ED has widened its ongoing money laundering probe into an alleged Bitcoin ponzi scam and is investigating the links of Mehta and others with politicians, politically exposed persons and bureaucrats, reported the agency quoting officials aware of the development.

Some audio clips and chats between Sule and Patole alleged that Bitcoins were used to fund the poll campaign, shared BJP spokesperson Sudhanshu Trivedi and said that it was clear that the MVA had seen the writing on the wall that it would be defeated in the polls. 

Sule has denied the charges and said she has filed a complaint with the Election Commission and the cybercrime department of the state against the false allegations. She told reporters on Wednesday that she “did not know Gaurav Mehta,” according to the report. 

Patole also dismissed the BJP's allegations and said, “The voice in the clip being circulated is not mine. Even (Prime Minister) Narendra Modi recognises my voice.”

The ED's money laundering investigation into the crypto-ponzi case stems from FIRs of Maharashtra Police and Delhi Police against a company named Variable Tech Pvt Ltd; individuals named (late) Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj and Mahender Bhardwaj; and a number of multi-level marketing agents who are alleged to have collected huge amounts of funds in the form of Bitcoins (worth ₹6,600 crore in 2017) from the public with the “false promise” of 10 per cent per month return in the form of Bitcoins.

ED claimed that the Bitcoins were supposed to be utilised for mining and investors were supposed to get huge returns in crypto assets, but the promoters “cheated” the investors and have been concealing the “ill-gotten” Bitcoins in obscure online wallets, as per the report.