CBI arrests Darwin Labs co-founder Ayush Varshney in Rs 20,000 crore Gain Bitcoin scam case
New Delhi (PTI): The CBI has arrested Darwin Labs co-founder Ayush Varshney, one of the main accused in the Rs 20,000 crore Gain Bitcoin currency scam case, officials said on Wednesday.
The agency had issued a Look Out Circular against Varshney. His attempt to flee the country on Monday triggered an alert, leading to his detention at the Mumbai airport, they said. Varshney was formally arrested on Tuesday.
According to the CBI, Darwin Labs designed and developed the digital infrastructure which formed the operational backbone of the alleged fraudulent enterprise Gain Bitcoin.
During the investigation, the agency detected the alleged involvement of Darwin Labs Private Limited and its co-founders -- Varshney, Sahil Baghla and Nikunj Jain, the chief capital officer and founder at Vaomi AI -- in the design, development and deployment of a cryptocurrency token known as MCAP and its associated ERC-20 smart contract.
In a statement, it said that Darwin Labs allegedly played a central role in building the technological architecture underpinning the cryptocurrency ponzi scam perpetrated through a web of platforms, including the flagship site www.gainbitcoin.com.
It was allegedly masterminded by Amit Bhardwaj (now deceased) and his brother Ajay Bhardwaj, the officials said.
The company developed several key components, including the Bitcoin mining pool platform GBMiners.com, a Bitcoin payment gateway, the Coin Bank Bitcoin wallet and the Gain Bitcoin website used to interface with investors.
Launched in 2015, the Gain Bitcoin operation was camouflaged under the facade of Variabletech Pte. Ltd, officials said.
The scheme lured the investors offering extraordinary returns of 10 per cent per month in Bitcoin over an 18-month period, urging them to purchase the digital currency from external exchanges and deposit it with GainBitcoin through "cloud mining" contracts.
"The funds collected from investors were subsequently misappropriated. The case is being investigated under Sections 120B, 406 and 420 of the Indian Penal Code (IPC) and Section 66 of the Information Technology Act, 2000," a CBI spokesperson said in a statement.
"The model followed a multi-level marketing (MLM) structure, commonly associated with pyramid structured ponzi schemes, where payouts were dependent on bringing in new investors. In its early days, investors received payouts in Bitcoin, fuelling the illusion of a lucrative venture. However, as the influx of new capital dwindled by 2017, the charade began to crumble.
"In an attempt to cover up the losses, GainBitcoin unilaterally switched payouts to their alleged in-house cryptocurrency called MCAP, which had significantly less value than Bitcoin, further misleading investors," the CBI had said in a statement after the registration of the case.
The sheer scale and complexity of the scam resulted in the registration of multiple FIRs, from Jammu and Kashmir to Maharashtra and from Delhi to West Bengal.
The Supreme Court had handed over the investigation into the case to the Central Bureau of Investigation (CBI), due to the expansive nature of the operation and the international ramifications it entailed.
The agency has launched a probe to unravel the full extent of the fraudulent activities, identify all implicated parties, and trace the misappropriated funds, including those that may have crossed borders.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Kharge calls NDA ‘opportunist alliance thriving on corruption’ at rally
Puducherry (PTI): Senior Congress leader Mallikarjun Kharge on Saturday said the NDA "is an opportunist alliance that thrives on corruption and the looting of public assets".
Addressing a rally of the INDIA bloc in Puducherry, the Congress president said Prime Minister Narendra Modi "had done nothing" for the union territory’s development.
He urged voters to back the INDIA bloc in the April 9 Assembly polls, calling it "an opportunity for the people to fight against divisive forces led by the BJP and RSS, which are destroying unity, harmony, and the progressive spirit of Puducherry."
Kharge also criticised the BJP for neglecting smaller states like Puducherry and made a strong case for granting it statehood, promising, "Congress will secure statehood—this is a guarantee we give to the people here".
He alleged that under the current AINRC-BJP coalition, Puducherry is "riddled with corruption and a 30 per cent commission system," with the NDA government exploiting the union territory, despite it being "one of the country’s most beautiful places".
He expressed concern over "misuse of funds and stalled development", alleging corruption had "seeped into every sector".
Kharge claimed that despite Prime Minister Modi’s zero-tolerance stance on corruption, "everything in practice is being handed to one person, Adani—from land to skies."
He added that the NDA was "exploiting land, temple lands, and public property."
The Congress leader also criticised the AINRC-BJP rule for granting permits for around 450 liquor shops and restaurants over the last five years, claiming, "Instead of providing clean water, the government has been giving liquor to the people."
Kharge compared the current situation with the previous Congress rule, highlighting development across sectors, particularly healthcare. "Hospitals were established here to take care of the health of the people," he said.
Among his promises, Kharge pledged "gold for mangala sutra" for women if Congress is elected, along with free education from primary school to research level.
He reiterated that Prime Minister Narendra Modi’s promises to Puducherry had not materialised and renewed his call for full statehood, citing the lack of powers as a "hindrance" to the elected government.
He recalled that during the previous Congress rule, then Chief Minister V Narayanasamy, who was also present, faced interference from then Lt Governor Kiran Bedi.
Kharge said Congress has always stood with the people and would continue to improve their lives through developmental programmes, as it had during earlier administrations.
The meeting was presided over by Puducherry PCC president V Vaithilingam, and among the speakers was S P Sivakumar of the DMK.
