New Delhi: The Central Bureau of Investigation (CBI) has made a major breakthrough in the long-running GainBitcoin cryptocurrency fraud case with the arrest of Ayush Varshney, co-founder of Darwin Labs. He was detained while allegedly attempting to leave the country for Colombo, Sri Lanka.
Officials intercepted Varshney at Chhatrapati Shivaji Maharaj International Airport in Mumbai after immigration authorities received an alert through a Look Out Circular issued against him. The alert enables law enforcement agencies to prevent suspects from leaving India while investigations are underway. After being detained at the airport, Varshney was handed over to the CBI and later formally arrested.
The arrest marks the first major detention by the agency in connection with the alleged ₹20,000 crore GainBitcoin scam, one of the largest cryptocurrency fraud cases reported in the country. Investigators say the scheme involved nearly 29,000 mined Bitcoins and affected thousands of investors across India.
According to officials, the case is linked to the GainBitcoin investment scheme, launched in 2015 by Amit Bhardwaj along with his brother Ajay Bhardwaj and their network of associates. The platform promised investors monthly returns of up to 10 percent in Bitcoin for a period of 18 months, claiming profits would be generated through cryptocurrency mining operations.
Investigators say participants were asked to purchase Bitcoin through cryptocurrency exchanges and then invest it in cloud mining contracts offered by the platform. The model reportedly operated on a multi-level marketing structure, where investors were incentivised to bring in new participants, allowing the network to expand rapidly across the country.
Initially, investors reportedly received returns in Bitcoin. However, by 2017, payouts began to decline. Authorities allege the operators then started distributing returns in their own cryptocurrency, MCAP, which had significantly lower value than Bitcoin. According to investigators, this move caused substantial losses for investors and suggested the scheme functioned similarly to a Ponzi operation.
Officials believe Darwin Labs may have played a key role in building and maintaining the digital infrastructure used by the network. Varshney’s arrest is therefore seen as an important step in the investigation, as agencies are now examining the technological backbone that allegedly supported the scheme.
The CBI said the investigation remains ongoing and spans several parts of the country. Authorities believe more individuals linked to the operation could face action as the probe continues.
