Founder of $150 Indian Bitcoin Ponzi Delivers Compensation to Victims
The mastermind behind the infamous bitcoin ponzi GainBitcoin has provided to compensate thousands of victims who incurred losses throughout the scheme which raked in an initial 1,000 crores in cryptocurrency (approx. $150 million).
Now beneath arrest, Amit Bhardwaj has been located out as the kingpin behind India&rsquos most significant cryptocurrency scam. The founder of now-defunct bitcoin mining pool GBminers and the investment scheme, commonly identified as &lsquoGainBitcoin &lsquo, has offered to repay investors their initial investments in Indian rupees according to neighborhood publication Aspect Every day.
GainBitcoin began as a multi-level advertising (Multilevel marketing) scheme in 2015 and amassed more than 100,000 investors by its own admission, all of whom had been promised monthly returns of ten% on their investment. When authorities caught on, Bhardwaj moved his base of operations to Dubai while continuing operations in India. He is alleged to have purchased several properties in Dubai such as an office space at the Burj Khalifa tower &ndash the world&rsquos tallest creating – according to an ongoing investigation into the sweeping scam. Authorities also found a quantity of businesses in countries such as Hong Kong, the British Virgin Islands, Estonia, Dubai and the United States registered by Bhardwaj.
Authorities have also found two bitcoin wallets controlled by Bhardwaj, previously containing a total of 5,372 bitcoins, about $40 million in present costs. At the time of discovery, the wallets contained a total balance of 3.31 bitcoins.
Authorities have also sought out significant cryptocurrency exchange Zebpay following determining that &lsquoa big volume of transactions among the victims and Bhardwaj took place through its platform&rsquo, according to the report.
&ldquoZebpay is the platform by way of which investment and sale of bitcoins were completed in this case, which is why they had been known as for an enquiry,&rdquo a police official from the cyber crime cell at the Indian city of Pune told the publication.
Curiously, Bhardwaj has supplied to repay investors their initial bitcoin investments with their corresponding value Indian rupees. His victims are understandably opposed to the move, demanding their dues in nowadays&rsquos industry value of their original bitcoins. &ldquoToday, the Bitcoin price tag is much greater than what it was when we invested,&rdquo an anonymous victim was quoted as stating. &ldquoIt is like Bhardwaj will hold the profits and just return the principal quantity which is wrong.&rdquo
Dozens of investors have reportedly filed police complaints in a quantity of cities which includes Pune, Mumbai, Kolkata, Delhi and other cities.
As reported previously, police have also raided and shuttered an Ethereum mining installation involved in the Multilevel marketing scheme, seizing one hundred Ethereum mining rigs as well as 500 GPUs and servers.
Featured image from Shutterstock.
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Published at Thu, 19 Jul 2018 09:09:53 +0000