New Delhi:
The Enforcement Directorate (ED) has seized properties worth Rs. Raj Kundra's 97.79 Crore Under Investigation Linked To A Bitcoin Ponzi Scam. Raj Kundra is the husband of actor Shilpa Shetty.
A Ponzi scheme is a fraud in which investors are promised double profits with little or no risk. But the money is not invested. Instead, the scammer focuses on luring more people and pays out profits to the initial investors with money from more recent investors.
The ED launched an investigation on the basis of multiple complaints filed by the Maharashtra and Delhi police against Variable Tech Private Limited, late Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, Mahender Bhardwaj and others.
The investigation claims that the accused amassed around Rs 6,600 Crore worth of Bitcoins in 2017 by misleading investors with promises of 10% monthly returns through Bitcoin investments. The promoters cheated the investors and hid the ill-gotten Bitcoins in obscure online wallets, the ED alleged.
During the investigation, the investigating agency found that Raj Kundra had received 285 Bitcoins from Amit Bhardwaj, the mastermind behind the Gain Bitcoin Ponzi scheme. These Bitcoins were intended for setting up a Bitcoin mining farm in Ukraine. However, the deal did not materialize, leaving Mr. Kundra in possession of the Bitcoins, which are currently valued at over Rs 150 Crore.
The attached properties include a residential flat in Juhu, currently registered in the name of actress Shilpa Shetty, a residential bungalow in Pune, and shares owned by Raj Kundra.