- The CBI has arrested Ayush Varshney in connection with the GainBitcoin Ponzi scheme.
- Varshney is the co-founder of Darwing Labs Private Limited.
- Darwin Labs developed and deployed the core infrastructure for GainBitcoin.
Ayush Varshney, co-founder and chief technical officer of Darwin Labs Private Limited, is under arrest in India by the Central Bureau of Investigation (CBI). Varshney is suspected of playing a role in the infamous GainBitcoin cryptocurrency fraud case, which was allegedly floated a few years ago by Variabletech Pte. Limited.
Varshney’s Involvement With GainBitcoin
The scheme encouraged investors to participate in a fraudulent cryptocurrency venture on the promise of high returns, following which the organizers misappropriated the investment. According to reports, the CBI’s investigation is pursuant to a Supreme Court Order from December 13, 2023, involving First Information Reports registered across India, and related to similar allegations connected to the GainBitcoin ponzi scheme.
In the meantime, the CBI focused on Darwin Labs Private Limited, zeroing in on its founders, including Ayush Varshney, Sahil Baghla, and Nikunj Jain, the firm’s chief capital officer/founder in Vaomi AI. Darwin Labs founders are alleged to have played significant roles in designing, developing, and deploying the associated crypto token, MCAP, and the corresponding ERC-20 smart contract.
A CBI statement noted that Darwin Labs Private Limited was instrumental in developing the fraudulent scheme’s entire technological infrastructure. Some products cited by the agency include Bitcoin mining pool platform GBMiners.com, Bitcoin Payment Gateway, Coin Bank Bitcoin wallet, and the Gain Bitcoin investor-facing website.
Related Article: India’s CBI Targets Crypto Proceeds After U.S. Fraud Alert to Delhi
Arrested After Years of Absconding
It is worth noting that Varshney had been accused of absconding, with a Look Out Circular issued against him. He was finally intercepted by the Indian immigration authorities in Mumbai on March 9 while attempting to leave the country. The immigration officers detained the suspect for about 24 hours before handing him over to the CBI for further investigation.
According to reports, enforcement agencies discovered that Amit Bhardwaj, a computer science engineering graduate from Maharashtra, now late, and his associates, allegedly launched the GainBitcoin online platform in 2015. The scheme promised investors 10% monthly return on Bitcoin investments for 18 months.
GainBitcoin operated for a while, making initial monthly payments to investors before engaging in delayed payments. The operators later launched the MCAP token, which they projected as a powerful crypto asset.
Related Article: Mumbai Court Issues Summons in Rs 6,600 Crore Gain Bitcoin Case
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Source: https://coinedition.com/indian-cbi-arrests-ayush-varshney-darwin-labs-co-founder-over-gainbitcoin-scam/
