Categories: Bitcoin In India
June 8, 2018
| On 3 years ago

Amit Bhardwaj Scam- How a $300 million crypto Ponzi scheme scam unravelled in India?

By Shalini Singh @Shalini_Singh15

If one were to pick the most peculiar trait of the digital currencies, it would be its unpredictability.

From being someone’s brainchild to becoming a convergence point of human interest, it has come a long way.

Bitcoins and the digital currencies have been sometimes widely embraced and at some other times, widely abandoned.

On one hand where countries like Japan and Venezuela have seen the digital currencies as a way to transform the conventional trading worldwide, on the other hand, countries like India and China are still cynical about its future and view them as a method to facilitate dubious transactions and illegal trade.

However, India’s abandoned child continue to shock the people by coming up with one after other malicious activities.

One such incident where Bitcoins have again become the eye of the storm is the latest crypto Ponzi scheme is the ‘Amit Bharadwaj Scam’ that has robbed many investors in India.

Amit Bharadwaj Scam- probably the biggest Bitcoin scam in India:

Amit Bhardwaj was once compared to the likes of Che Guevera or Osho as he was able to convince a huge number of people into investing in his crypto Ponzi scheme.

The scammer made the people of India believe in the power and potential of Bitcoins and made them invest in his coin named GainBitcoin.

Also at his multi-level marketing company, he promised people a 10 percent return on his Bitcoin Investment up to 18 months.

Shivam Tharkal, CEO at BuyUCoin said that Amit Bhardwaj helped in scaling up the cryptocurrency business in India.

Bhardwaj considered himself as a cryptocurrency Guru and he also started up a number of cryptocurrency companies such as AmazeMiners, GB Miners, GainBitcoin and CoinBank under parent company Amaze Mining and Blockchain Research Ltd. that used to deal with cryptocurrency mining, research, wallet, and development.

But, when he received sufficient investments from his investors, he flew away with the money.

How he lured his investors?

The biggest drawback in his multi-level marketing scheme was its mode of investment and returns which was Bitcoin.

Amit took the investment took the investment in Bitcoins and promised to give a return of 10 percent in Bitcoins. He befooled his investors by saying that it was possible due to his cloud mining pool which he had set up in China.

He evolved his scheme later and introduced the MCAP tokens which he used as a payout to invest in the MLM scheme.

When he failed to escape:

Amit stopped replying to his investors’ emails and people started panicking.

Many of them lodged FIR and finally, he was caught on 5th April. The Cyber Cell along with the Economic Offence Wing of the Pune police informed media about the same. He has been under the police custody since March 31st, 2018 and police are continuing their investigations.

Shalini Singh @Shalini_Singh15

A Writer | A Reader | Above all- A Human Being constantly looking forward to pushing the envelopes!

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