India’s Enforcement Directorate has filed charges against businessman Raj Kundra and accused him of being the beneficial owner of 285 Bitcoins worth Rs 150.47 crore ($31 million) received from late crypto-scam mastermind Amit Bhardwaj.
Summary
- India’s Enforcement Directorate has charged businessman Raj Kundra with laundering 285 Bitcoins—worth ₹150 crore ($31 million)—allegedly received from late GainBitcoin mastermind Amit Bhardwaj.
- Investigators say Kundra concealed evidence, retained the cryptocurrency after a failed mining deal in Ukraine, and disguised illicit funds through transactions with his wife, actor Shilpa Shetty.
- The case ties Kundra to one of India’s largest crypto Ponzi schemes, which duped over 8,000 investors out of 80,000 Bitcoins between 2015 and 2018.
The charge sheet filed before a special Prevention of Money Laundering Act court states that Kundra concealed crucial evidence and failed to surrender the cryptocurrency.
The ED claims Kundra remains in possession of the proceeds of crime and conducted transactions with his actor wife, Shilpa Shetty, at below-market rates to disguise funds obtained through criminal activities.
The agency alleges he has frustrated legal proceedings by layering the proceeds of crime and projecting them as legitimate funds.
Kundra’s role in Bitcoin mining scheme disputed
The Times of India reported that the money laundering case originates from police complaints against Variable Tech Private Limited and the Bhardwaj family, who operated GainBitcoin and related platforms.
According to the ED, the promoters promised investors huge returns through Bitcoin (BTC) mining but instead defrauded them and concealed stolen Bitcoin in obscure online wallets.
Kundra received the 285 Bitcoins from Amit Bhardwaj for establishing a Bitcoin mining farm in Ukraine. When the deal failed to materialize, Kundra allegedly retained possession of the cryptocurrency rather than returning it to the original scheme operators.
The ED rejected Kundra’s claims that he acted merely as a mediator in the transaction.
The chargesheet notes that Kundra’s ability to recall the exact number of Bitcoins received in five specific tranches after seven years “solidifies the fact that he was indeed the recipient of Bitcoins as a beneficial owner.”
Investigators found that the agreement titled “Term Sheet” was signed directly between Kundra and Mahendra Bhardwaj.
The ED stated that this evidence proves Kundra was a principal party, rather than an intermediary, in the cryptocurrency transfer.
Missing evidence complicates recovery efforts
Since 2018, Kundra has failed to provide wallet addresses where the 285 Bitcoins were transferred, hampering recovery efforts.
He attributed this inability to damage to his iPhone X shortly after his initial statement, which the ED interpreted as a deliberate attempt to destroy evidence.
The agency noted that Kundra could not provide “any underlying documentary evidence” to support his mediation claims, despite the substantial value of the cryptocurrency involved.
Amit Bhardwaj operated one of India’s largest cryptocurrency Ponzi schemes between 2015 and 2018, collecting approximately 80,000 bitcoins worth ₹6,600 crore from over 8,000 investors.
The scheme operated through GainBitcoin, GBMiners, and GB21 platforms before collapsing.
The chargesheet also names businessman Rajesh Satija as another accused party in the case.
Source: https://crypto.news/indias-ed-targets-31m-crypto-scammers-raj-kundra/
