Several people, including two “cybersecurity specialists” who were assisting authorities in their investigation into GainBitcoin, have been detained.
Pune Police say that the two detectives “conned the police and moved cryptocurrency worth INR 20 Cr into their personal accounts (USD 2.6 million),” according to the police department.
In order to aid police in tracking down bitcoin that had been laundered through GainBitcoin, Pankaj Prakash Ghode and Ravindranath Prabhakar Patil were assigned the responsibility of assisting them.
GainBitcoin was a cryptocurrency MLM Ponzi scheme that made 10% a month. Amit Bhardwaj (right), the company’s founder, was said to have died of heart arrest in January.
As per the Inc42:
“Patil and Ghode were provided with the data and wallet link by the police in order to comprehend the scam and its perpetrators better.
As an alternative to handing over the cryptocurrency to law enforcement, the duo put a portion of the cryptocurrencies into their own personal wallets.
The duo is suspected of supplying fraudulent and falsified papers to the GainBitcoin investigation team. They are also accused of using the proceeds of the alleged scam to purchase costly automobiles.”
Investigators successfully retrieved “241.475 bitcoins, 452 bitcoin cash, and 94 ether from Amit and Vivek Kumar Bhardwaj” as a result of Ghode and Patil’s efforts.
Perhaps they believed they weren’t being compensated adequately?
The Enforcement Directorate conducted an interrogation of Amit Bhardwaj’s brother Ajay Bhardwaj on Monday, connected to the previous story.
As was the case with his brother, Ajay was detained in 2018 but was freed due to his poor condition.
As of December 2018, Indian police have seized 451.999 bitcoin linked to the GainBitcoin cryptocurrency exchange.
They have not been charged or prosecuted yet. None of the confiscated assets have been restored to the individuals who were the victims of the fraud scheme.