The Enforcement Directorate (ED) has seized assets valued at ₹97.79 crore linked to Raj Kundra in connection with a Bitcoin Ponzi scam investigation. Raj Kundra, who is married to Bollywood actor Shilpa Shetty, had properties including a residential flat in Juhu, currently registered under Shilpa Shetty’s name, and a residential bungalow in Pune, as well as equity shares, confiscated.
In a Ponzi scheme, investors are promised significant returns with minimal risk, but their funds are not genuinely invested. Instead, the scammer focuses on attracting more investors and pays profits to initial investors using funds from newer ones.
The ED initiated its probe based on multiple complaints lodged by Maharashtra and Delhi Police against Variable Tech Private Limited, along with late Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, Mahender Bhardwaj, and others.
According to the investigation, the accused allegedly amassed around ₹6,600 crore in Bitcoins in 2017 by duping investors with promises of 10% monthly returns through Bitcoin investments. The promoters are accused of deceiving investors and stashing the illicitly obtained Bitcoins in obscure online wallets.
During the inquiry, the probe agency discovered that Raj Kundra had received 285 Bitcoins from Amit Bhardwaj, the mastermind behind the ‘Gain Bitcoin’ Ponzi scheme. These Bitcoins were supposedly intended for establishing a Bitcoin mining farm in Ukraine. However, the deal fell through, leaving Kundra in possession of the Bitcoins, currently valued at over ₹150 crore.
Raj Kundra’s legal history includes his arrest in 2021 in connection with a case involving the production and distribution of pornographic films via a subscriber-driven mobile app named ‘Hotshots’. He was granted bail in that case by the Supreme Court.
The seizure of assets and ongoing investigations underscore the seriousness with which authorities are addressing financial crimes, particularly those involving cryptocurrencies. Kundra’s involvement in both the Bitcoin Ponzi scheme and the pornographic film case highlights the complexity and diversity of challenges faced in combating organized crime and financial fraud.
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