Indian Businessman Indicted in $31M Crypto Scam Case

India’s Enforcement Directorate (ED) has filed serious charges against popular businessman Raj Kundra over his alleged role in one of India’s largest crypto scam cases. He is accused of holding 285 Bitcoins worth $31 million. 

The agency alleged that these digital coins were passed to Kundra by the late Amit Bhardwaj, the mastermind of the GainBitcoin fraud.

ED Alleges Raj Kundra Hid Illegal Funds Through Property Deals

The chargesheet filed before a special Prevention of Money Laundering Act (PMLA) court alleges that Raj Kundra concealed evidence. The ED claims he made property deals with his wife, actor Shilpa Shetty, at below-market prices to hide illegal funds.

Officials say Kundra disguised the proceeds of crime as legitimate income, hindering legal proceedings. The case links back to complaints against Variable Tech Private Limited and the Bhardwaj family, who ran GainBitcoin and related schemes. 

ED Accuses Raj Kundra of Holding 285 Bitcoin in Crypto Scam Case

Investigators allege that Amit Bhardwaj transferred 285 Bitcoins to Raj Kundra for a proposed mining farm in Ukraine. After the project failed, Kundra allegedly retained the Bitcoins instead of returning them.

The ED dismissed his claim of acting only as a mediator, noting that his precise recollection of five separate transfers proved ownership. A signed “Term Sheet” with Mahendra Bhardwaj further identified him as a principal party in the deal.

Since 2018, Kundra has not provided wallet addresses for the Bitcoins, citing damage to his iPhone X. The ED viewed this as a deliberate attempt to destroy evidence. It also noted that Kundra failed to provide supporting documents despite the large value involved. 

Like many others seen in similar cases, Kundra could face prosecution and jail if convicted; however, the case is still ongoing.

Kundra Case Linked to India’s Biggest Crypto Ponzi Scheme

The case goes back to 2015–2018, when late Amit Bhardwaj ran one of India’s biggest crypto Ponzi schemes. Through platforms like GainBitcoin, GBMiners, and GB21, he and his team attracted over 8,000 investors with promises of high returns. 

Instead, about 80,000 Bitcoins worth ₹6,600 crore were taken and hidden in digital wallets. This case highlights the danger of Ponzi schemes, which often appear as genuine investments. Meanwhile, Kundra is not the only businessman under investigation; the ED has also named Rajesh Satija as an accused. 

Globally, similar schemes have caused massive losses. Between 2014-20217, Ruja Ignatova, the mastermind behind OneCoin, lured investors with fake crypto mining promises, siphoning investors’ money worth billions of dollars. In 2024, the United States Department announced a new $5 million reward for any information on Ignatova, also known as the “Cryptoqueen.”