ED Charges Raj For Holding 285 Bitcoins From Bitcoin Scam

ED accuses Raj Kundra of holding 285 Bitcoins worth more than ₹150 crore.
Chargesheet says Kundra signed a “Term Sheet” with Mahendra Bhardwaj.
Kundra cited a damaged phone for missing wallet data since 2018.
Businessman Rajesh Satija was also named as an accused in the laundering case.

The Enforcement Directorate has filed a chargesheet against businessman Raj Kundra in connection with the GainBitcoin scam. Investigators claim Kundra retained 285 Bitcoins worth over ₹150 crore that were originally transferred by scam mastermind Amit Bhardwaj. The agency alleges concealment of evidence, layering of funds, and fraudulent transactions.

Bitcoin Scam Origins

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The money laundering case traces back to GainBitcoin, a Ponzi scheme launched by Amit Bhardwaj and his associates between 2015 and 2018. Police complaints were filed in both Maharashtra and Delhi, which later formed the basis of the Enforcement Directorate’s investigation.

GainBitcoin and its related platforms, including GBMiners and GB21, promised investors lucrative returns from Bitcoin mining. According to the agency, over 8,000 investors were defrauded, losing nearly 80,000 Bitcoins valued at approximately ₹6,600 crore.

Instead of delivering returns, the promoters allegedly concealed stolen cryptocurrency in obscure online wallets. The ED’s chargesheet identifies Variable Tech Private Limited and several Bhardwaj family members as core operators of the scheme. These included Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, and Mahendra Bhardwaj, along with the late Amit Bhardwaj.

Allegations Against Raj Kundra

According to the ED, Raj Kundra received 285 Bitcoins directly from Amit Bhardwaj. The cryptocurrency was transferred for the purpose of setting up a Bitcoin mining farm in Ukraine. However, the project never materialised, and investigators allege Kundra retained the digital assets instead of returning them.

The chargesheet valued these 285 Bitcoins at more than ₹150 crore based on current prices. Officials argued that Kundra’s ability to recall the exact number of Bitcoins received in five separate tranches over seven years demonstrates that he was the beneficial owner, not a mediator.

An agreement titled “Term Sheet” was presented as evidence by the agency. Investigators said it was signed directly between Kundra and Mahendra Bhardwaj, proving that Kundra acted as a principal party in the cryptocurrency transfer. The ED dismissed Kundra’s claim that he only acted as a facilitator.

Missing Evidence And Concealment Claims

The chargesheet emphasised that Kundra failed to provide wallet addresses for the 285 Bitcoins since 2018, despite repeated requests. He attributed this to damage to his iPhone X soon after his first statement.

The agency described this as a deliberate attempt to withhold data and obstruct recovery efforts. Furthermore, the ED said that Kundra produced no documentary evidence to substantiate his mediation claim.

Instead, he allegedly engaged in financial layering by conducting a property transaction with his wife, actress Shilpa Shetty, at rates far below market value. The ED contended that this was a method of disguising funds obtained through illegal activity.

Wider Case And Other Accused

The investigation also named businessman Rajesh Satija as another accused in the laundering case. Officials said both Kundra and Satija frustrated legal proceedings by refusing to cooperate fully with investigators and by failing to disclose complete information.

The Enforcement Directorate stressed that the case is part of ongoing action against India’s largest cryptocurrency Ponzi fraud. Amit Bhardwaj, who died in 2022, was described as the mastermind behind the scheme.

The chargesheet has been filed before a special Prevention of Money Laundering Act (PMLA) court. Further hearings will determine the course of action regarding the recovery of funds and accountability of the accused.

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