The Enforcement Directorate (ED) has taken significant action against businessman Raj Kundra, attaching assets valued at ₹97.79 crore as part of a money-laundering investigation. This investigation centers around a substantial Bitcoin-based ponzi scheme orchestrated by Singapore-based Variable Tech Private Limited, which is accused of defrauding investors of approximately ₹6,600 crore.
Details of the Attached Assets
Among the assets provisionally attached by the ED are a residential flat in the upscale Juhu area registered in the name of Bollywood actress Shilpa Shetty, a residential bungalow in Pune, and various equity shares held by Raj Kundra. These measures come as Kundra is suspected to have benefited from the proceeds of this criminal enterprise.
How the Scam Operated
The agency’s investigation revealed that Variable Tech lured investors by promising high returns from Bitcoin mining and collected around 80,000 bitcoins. These funds were then allegedly used to purchase properties abroad instead of being utilized for mining activities as promised to the investors. The agency noted, “The promoters cheated the investors and have been concealing the ill-gotten Bitcoins in obscure online wallets.”
Kundra’s Alleged Involvement
According to the ED, Kundra received 285 bitcoins worth over Rs. 150 crore from Amit Bhardwaj, the alleged mastermind behind the scam, for a proposed Bitcoin mining farm in Ukraine. Despite the project not materializing, Kundra allegedly remains in possession of these bitcoins, highlighting his direct involvement in the fraudulent scheme.
Ongoing Investigation and Arrests
The ED’s probe into this ponzi scheme began in 2018 following numerous complaints lodged by Maharashtra and Delhi police against Variable Tech and its agents. In a related development earlier this year, Delhi businessman Nikhil Mahajan was arrested for his role in promoting the scam, including organizing seminars in Dubai to attract investors, from whom he received 40 bitcoins.
The principal accused in the case, Ajay Bhardwaj and Mahendra Bhardwaj, remain at large. The investigation continues to uncover the breadth of this scheme and aims to track down all involved parties.
