Enforcement Directorate Provisionally Seizes Raj Kundra’s ₹97.79 Cr Assets in Bitcoin Ponzi Scam

Enforcement Directorate Provisionally Seizes Raj Kundra’s ₹97.79 Cr Assets in Bitcoin Ponzi Scam

In its investigation into possible money laundering connected to the ₹6,600 crore Bitcoin-based Ponzi scheme allegedly run by a Singapore-based company called Variable Tech Private Limited, the Enforcement Directorate announced on Thursday that it has provisionally seized assets worth ₹97.79 crore belonging to businessman Raj Kundra. ED sources claim that Kundra, the spouse of Bollywood actress Shilpa Shetty, may have benefited financially from the crime’s proceeds. The properties that are linked are a residential apartment in Juhu that is currently owned by Shilpa Shetty, a residential house in Pune, and equity shares that are owned by Raj Kundra.

According to the Enforcement Directorate, Variable Tech deceived unsuspecting investors nationwide into parting with 80,000 bitcoins in exchange for substantial returns. The money was allegedly transferred through nine companies to buy properties overseas, totaling ₹6,606 crore. “Investors were expected to receive enormous returns on their cryptocurrency assets, and the gathered Bitcoins were intended to be used for Bitcoin mining. However, the promoters defrauded the investors and were using hidden online wallets to hide the fraudulently obtained bitcoins, according to the agency.

It further stated that in exchange for establishing a Bitcoin mining farm in Ukraine, Raj Kundra was given 285 bitcoins by Amit Bhardwaj, the scam’s “mastermind” and promoter. The aforementioned Bitcoins came from criminal proceeds that Amit Bhardwaj obtained from naive investors. Due to the deal’s failure, Kundra continues to own and enjoy 285 bitcoins, which are currently worth over Rs. 150 crore, according to the ED. Ajay and Mahendra Bhardwaj, the primary suspects in the case, are still at large.

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Based on many complaints against Variable Tech and other agents that Maharashtra and Delhi police had filed, the ED opened an investigation into the Ponzi scheme in 2018. Nikhil Mahajan, a businessman in Delhi, was taken into custody by the agency in January in relation to this investigation. By holding seminars in Dubai to draw investors, Mahajan allegedly assisted the accused in disseminating and publicizing the purported scam and was rewarded with forty bitcoins. At the moment, a bitcoin might cost up to ₹51 lakh. Bitcoins are not accepted as cash.