ED seizes Raj Kundra's properties worth Rs 97 crore in bitcoin ponzi scam

The Enforcement Directorate (ED) has seized properties valued at Rs 97.79 crore belonging to businessman Raj Kundra in connection with a bitcoin ponzi scam, invoking the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Among the seized assets is a flat in Juhu registered under the name of Kundra's wife, actor Shilpa Shetty, alongside a bungalow in Pune and equity shares owned by Kundra himself.

This action follows an investigation initiated by the ED based on multiple FIRs filed by Maharashtra Police and Delhi Police against Variable Tech Private Limited, and accused individuals including late Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, Mahender Bhardwaj, and others.

The accusations stem from allegations that the accused collected substantial funds in bitcoins, amounting to Rs 6,600 crore in 2017, by promising investors a monthly return of 10 percent in bitcoins. These funds were purportedly meant for bitcoin mining, with investors anticipating significant returns in crypto assets. However, the promoters allegedly deceived investors and concealed the acquired bitcoins in obscure online wallets.

According to the ED's investigation, Raj Kundra received 285 bitcoins from Amit Bhardwaj, the mastermind behind the GainBitcoin ponzi scheme, for establishing a bitcoin mining farm in Ukraine. These bitcoins were allegedly sourced from proceeds of crime amassed by Bhardwaj from unsuspecting investors.

Despite the deal falling through, Kundra retains possession of the 285 bitcoins, currently valued at over Rs 150 crore.

Prior to this development, the ED had already seized properties worth Rs 69 crore in connection with the case. Several search operations were conducted earlier, resulting in the arrest of three individuals—Simpy Bhardwaj, Nithin Gaur, and Nikhil Mahajan—who are currently in judicial custody. However, key accused Ajay Bhardwaj and Mahendra Bhardwaj remain at large.

Legal proceedings have progressed, with a complaint filed by the prosecution on June 11, 2019, and a supplementary complaint lodged on February 14 of this year. A special PMLA court has acknowledged these complaints, marking a significant advancement in the case.