India’s ED probe Bollywood star in $800m crypto ponzi scheme

India’s ED is investigating Raj Kundra in a $800m cryptocurrency Ponzi scheme, seizing assets and linking him to a failed Bitcoin mining project.

The Enforcement Directorate (ED) is probing Raj Kundra, a prominent businessman and husband of Bollywood actress Shilpa Shetty, concerning a money laundering case linked to a cryptocurrency Ponzi scheme dubbed ‘Gain Bitcoin.’ Notably, Kundra is not the main suspect in this investigation.

In the ongoing probe, the ED has confiscated assets worth roughly $12 million, including a Mumbai flat owned by Shilpa Shetty.

Launched in 2017 by Ajay Bhardwaj and Mahendra Bhardwaj, ‘Gain Bitcoin’ promised investors a return of 10% per month, payable in Bitcoin, and quickly amassed about $800 million.

The scheme initially operated by distributing returns to early investors using the funds from new participants. However, as recruiting new investors became challenging, the payouts stopped. The organizers then converted the remaining funds into Bitcoins and hid them in anonymous digital wallets.

Investigations have revealed that Kundra received 285 Bitcoins, now worth over $18 million, from Amit Bhardwaj, the promoter behind the scheme. The tokens were purportedly intended for a Bitcoin mining project in Ukraine that never materialized, and reports suggest Kundra still holds them.