Bitcoin Scam News: The ambiguity of the crypto space and the somewhat ignorance of the investors have pushed the ecosystem under the hands of Ponzi schemes. GainBitcoin Ponzi scheme can be counted amongst the most significant Bitcoin schemes wherein around 8000 investors were duped for over $300 million.
Naturally, such a scam has created an avalanche of concerns for the regulatory and legal aspect of the cryptocurrency ecosystem. In simplest of terms, the GainBitcoin scheme lured investors by offering rewards for contributors including massive ROI, or return of investment.
Masterminded by Amit Bhardwaj, the scheme was called out from its onset by the crypto enthusiasts who have had deep knowledge of Bitcoin mining and crypto payment methods. However, the lure of profits and some smart cover-ups by Bhardwaj, that claims that he would “personally explain” the complex “maths” behind the success of the schemes, convinced the investors to believe in the scheme.
While for some, it was clear that even with incredible turnarounds for the cloud mining projects a 10% ROI each month for every contributor is an impossible task.
The Mastermind – Amit Bhardwaj
When the Ponzi scheme managed to flick millions from investors, in the latter half of 2017, Bhardwaj’s name came across one of the main culprits. As and when investors realized that they are duped, cases were filed against him, before the police could make an arrest Bhardwaj absconded the country. Later in April, the scamster was arrested in Thailand.
The chargesheet filed against him by Indian authorities includes several counts of very serious fraud and embezzlement. Apart from him, nine other men and women are being charged with a variety of crimes associated with the running of the multi-million-dollar MLM scam.
452 Bitcoins Recovered
The Indian authorities have managed to mince around 452 Bitcoin from Amit, a small part of tokens he stole during the duration of his Ponzi operation. In addition, the authorities have also seized property worth USD $5.9 million from individuals involved in the organization.
Reportedly, over a whopping $523 million USD has been lost by the scam victims. Though currently the 452 BTC recovered might seem quite less in comparison to this cost, back in 2017, when BTC was enjoying a great price point the 452 BTC would have had a value of an incredible $3.6 million USD.
While the authorities are vigrously trying to untie the knots, there is still a long way for the authorities to recover more funds that were stolen by the nefarious Indian scammers behind GainBitcoin.