New Delhi, March 17: A Delhi court has remanded Ayush Varshney, the co-founder and Chief Technology Officer (CTO) of Darwin Labs Private Limited, in judicial custody until March 30. This decision follows his arrest in connection with the alleged GainBitcoin cryptocurrency fraud, which is estimated to involve several thousand crores of rupees.
Varshney was presented in the Rouse Avenue Court after being apprehended by the Central Bureau of Investigation (CBI). The agency is investigating this alleged scam, which is valued at approximately ₹20,000 crores.
The investigation pertains to an alleged Ponzi scheme that promised unusually high returns on cryptocurrency investments but reportedly misused the funds collected from investors. According to the CBI, Varshney was intercepted by immigration officials at Mumbai Airport while attempting to flee to Colombo, Sri Lanka.
Officials stated that he was detained based on a ‘Look Out Circular’ issued against him and was subsequently handed over to the CBI. The agency formally arrested him and presented him in court. This marks the first arrest in this case, which is linked to the GainBitcoin scheme that began in 2015.
The scheme was reportedly led by Amit Bhardwaj (now deceased), along with his brother Ajay Bhardwaj and their network. Following a Supreme Court order on December 13, 2023, the CBI took over the investigation of multiple FIRs related to GainBitcoin, which directed the agency to operate as a ‘shared investigative agency.’
During the investigation, the roles of Darwin Labs and its co-founders, including Varshney, Sahil Bagla, and Nikunj Jain, have been scrutinized closely.
Investigators allege that the company developed and deployed the MCAP crypto token along with its ERC-20 smart contract, providing the necessary technical infrastructure for this alleged fraud. This infrastructure reportedly included a Bitcoin mining platform, a Bitcoin payment gateway, a coin bank wallet, and the GainBitcoin investor portal, which were utilized by participants in the scheme.
The CBI has stated that the investigation is ongoing, and as it delves deeper into the network behind this alleged cryptocurrency fraud, further arrests and new revelations are likely.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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