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Indian federal authorities arrested technology executive Ayush Varshney on March 10, 2026, at Mumbai International Airport in connection with GainBitcoin, an alleged Ponzi scheme that promised 10% monthly returns on Bitcoin investments and collapsed in 2017.
The Central Bureau of Investigation (CBI) alleges Darwin Labs, which Varshney co-founded, built the technological infrastructure for the scheme, affecting thousands of Indian investors. According to the CBI, the scheme initially paid returns in Bitcoin before switching to a lesser-known token (MCAP) to defraud victims.
Following the interception, Varshney was handed over to investigators and formally arrested on March 10 as part of the ongoing probe into the GainBitcoin cryptocurrency fraud case.
Authorities allege that the scheme attracted thousands of investors by promising unusually high returns through cryptocurrency investments, before ultimately collapsing and leaving victims with significant financial losses.
A CBI spokesperson said the investigation centers on the misuse of investor funds collected through the crypto platform.
“The funds collected from investors were subsequently misappropriated, leading to massive financial losses for thousands of victims across India.” — CBI spokesperson, Central Bureau of Investigation
The GainBitcoin cryptocurrency fraud case remains one of the largest cryptocurrency-related fraud investigations in India.
Investigators say the GainBitcoin cryptocurrency fraud case revolves around an alleged Ponzi-style investment scheme operated by Variabletech Pte. Ltd..
The project was reportedly launched in 2015 by brothers Amit Bhardwaj and Ajay Bhardwaj. Investors were promised monthly returns of 10 percent on bitcoin investments for a period of 18 months.
Initially, participants reportedly received payouts in Bitcoin, which helped build credibility and attract more investors into the platform.
However, authorities say the scheme eventually collapsed in 2017. At that stage, payouts were reportedly switched from Bitcoin to a lesser-known cryptocurrency known as MCAP.
The token — developed within the ecosystem connected to the platform — carried far lower market value, leaving many investors unable to recover their funds.
As the platform stopped honoring earlier promises of high returns, victims began filing complaints with police across several Indian states. Multiple First Information Reports (FIRs) were subsequently registered, alleging fraud, cheating, and money laundering linked to the GainBitcoin cryptocurrency fraud case.
These complaints eventually led to a nationwide investigation coordinated by federal authorities.
The investigation into the GainBitcoin cryptocurrency fraud case gained momentum after India’s highest court ordered a centralized probe.
According to the CBI, the ongoing inquiry follows a directive issued by the Supreme Court of India on December 13, 2023.
“The ongoing investigation follows a Supreme Court order dated December 13, 2023, directing the CBI to act as the common investigating agency to probe multiple FIRs registered across states linked to the GainBitcoin fraud.” — CBI spokesperson
The probe is being conducted under several legal provisions, including Sections 120B (criminal conspiracy), 406 (criminal breach of trust), and 420 (cheating) of the Indian Penal Code. Authorities are also applying Section 66 of the Information Technology Act, 2000.
Investigators say these charges reflect the complex technological and financial aspects involved in the GainBitcoin cryptocurrency fraud case, which combined digital platforms with traditional investment fraud tactics.
Officials continue to examine financial flows, technical infrastructure, and the roles played by individuals involved in the alleged scheme.
During the investigation, authorities said they uncovered evidence linking technology developers to the infrastructure used in the GainBitcoin cryptocurrency fraud case.
The CBI alleges that Darwin Labs and its co-founders were involved in building critical systems that supported the operation.
These systems reportedly included the MCAP crypto token and its ERC-20 smart contract, a bitcoin mining platform known as GBMiners.com, a cryptocurrency payment gateway, the Coin Bank digital wallet, and the GainBitcoin investor website.
According to investigators, these digital platforms formed the technological backbone that allowed the scheme to attract investors and process cryptocurrency transactions.
“Darwin Labs reportedly built and maintained key components of the operation, including the crypto token MCAP and its ERC-20 smart contract, the bitcoin mining platform GBMiners.com, a bitcoin payment gateway, the Coin Bank wallet, and the GainBitcoin investor website.” — CBI spokesperson
Authorities allege that these systems enabled the fraudulent enterprise to collect and redirect investor funds under the appearance of legitimate cryptocurrency mining and trading services.
The GainBitcoin cryptocurrency fraud case investigation is ongoing, with officials continuing to examine the roles of other individuals and companies linked to the network.
As regulators worldwide confront similar schemes in emerging digital asset markets, the outcome of the GainBitcoin cryptocurrency fraud case could influence how authorities approach cryptocurrency fraud investigations in the future.
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