Amit Bhardwaj, who allegedly duped investors of some Rs2000 crore through Bitcoin related Ponzi schemes, has been arrested at Delhi Airport by the Pune Police.
Earlier the Maharashtra government asked Enforcement Directorate to probe the alleged Ponzi schemes which was run through the GainBitcoin website. A lookout notice was issued for GainBitcoin founder Amit Bhardwaj, who has fled the country, Ranjit Patil Minister of State for Home, had said earlier. The action came following a case filed at a police station in Nanded on January 24, 2018.
Riding on the popularity of Bitcoins and an extraordinary returns it gave in the past, there are many ponzi schemes that have been floating in the market. They work like multi level marketing schemes and invest your money in a digital currency. They ask you to add members to your network and as the downline grows the scheme pays you more commission. The government and the Reserve Bank of India has issued many notices alerting people that cryptocurrencies are not recognised by the government, and whoever trade in Bitcoin and alternative coins should do it at their own risk.
The complaint has also been filed against Amit Bhardwaj on change.org, a petition website, by Zakhil Suresh, a 23-year-old student. His petition says: “Back in 2015, when I was doing my internship, I came across a company named Gain Bitcoin through my friend. It seemed to be a platform where I can learn more, teach more, and also earn while doing so. One month later along with my couple of friends, I flew to Delhi to meet the owner of Gain Bitcoins – Mr Amit Bhardwaj.”
The petition further states, “We spoke for an hour or so where he explained to me about the business concept, payouts, his “5-year” plan and much more. The Company is originally registered in Singapore in the name VariableTech Pvt Ltd. He told me that this was because of the bitcoin-friendly laws in Singapore. He said the mining pool of the Company is in China and for every contract, we buy by paying 1 BitCoin, the Company would pay us 0.1 BTC for 18 months. One week after coming back to Kerala I opened 6 positions in his company by paying 6 BitCoins. Soon the website was closed down for maintenance. I requested for my first withdrawal after 3 weeks and now even after one and a half years – my withdrawals are still pending. I contacted the support n number of times. Result: No Response. I e-mailed Amit. Result: So Response.”
Amit Bhardwaj has also written a book called Crypto Currency for Beginners, for which he gave large advertisements in a daily newspaper for its promotion.