
In India, the husband of actress Shilpa Shetty, Bollywood businessman Raj Kundra, has been formally charged by the Enforcement Directorate (ED) formally in relation to a 31 million Bitcoin scam. The ED accused Kundra as the beneficial owner of 285 Bitcoins worth above 150 crores, which he received as a gift from the late crypto-scam genius Amit Bhardwaj, who was the architect of the infamous Gain Bitcoin Ponzi scheme that defrauded thousands of investors. The chargesheet claims otherwise initially by saying that Kundra was not a mediator; he was, in fact, directly involved, and he participated in hiding the money.
The transfer of Bitcoin was supposedly intended to install a mining farm in Ukraine, which never came to pass, and Kundra supposedly kept the cryptocurrencies. He is suspected by the investigators of having intentionally hidden the essential evidence, such as addresses used on their wallets and conducting business with his wife, Shilpa Shetty, at a much lower price compared to the market rate, in an attempt to conceal the source of illegal money. The case is one essential step in India’s curbing of cryptocurrency fraud, as the country raises its attention to high-profile individuals who have been linked to crypto crimes. The investigation is likely to proceed, and trial proceedings are also anticipated to begin.
Key Details of the Case
- Charged with: allegations of being related to a tapes-based pornography ring in Mumbai (Bollywood).
- Charging: Keeping and hiding 285 Bitcoins with a domestic value of over 150 crore (31 million dollars) of which Amit Bhardwaj is a participant in the largest crypto Ponzi scheme in India.
- Ponzi scheme Gain Bitcoin Ponzi (2015-2018), a scheme that promised excessive returns to more than 8,000 investors, was organised by Amit Bhardwaj.
- Approach: Bitcoins that were supposed to be mined in Ukraine, but they were not; Kundra kept the Bitcoins and supposedly concealed their wallet addresses.
- Money Laundering: Sold the assets between Kundra and Shilpa Shetty at a low value to cover up the source of money.
- Legal Status: Charged with the Prevention of Money Laundering Act (PMLA); trial pending.
Investigation Timeline and Impact
The case dates back to approximately 2017 when the Gain Bitcoin scam was introduced, and defrauded investors filed FIRs against the police. The initial inquiry of Kundra was in 2018. In 2024, the ED provisionally attached assets to the tune of ₹98 crore belonging to the pair. The recent filing of the chargesheet is a step of enormous growth, with the attention of the agencies enforcing the laws towards the role of the celebrities in crypto fraud. This example throws light on the danger and regulatory issues in the fast-changing cryptocurrency market in India.
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