In the ongoing investigation into a Bitcoin Ponzi scheme, the Enforcement Directorate (ED) has taken a major step forward by seizing properties belonging to Raj Kundra, the husband of Bollywood actress Shilpa Shetty, valued at roughly ₹97.79 crore. The investigation is a result of claims that Variable Tech Private Limited was involved in a fraudulent scheme that involved Amit Bhardwaj and other well-known individuals.
The properties that are attached are a residential apartment in Juhu that is presently registered in Shilpa Shetty’s name, a residential house in Pune, and equity shares that are owned by Raj Kundra. Through Prashant Patil, their attorney, Kundra and Shetty have denied any involvement and maintained their innocence, stressing that there isn’t even a strong enough case against them and expressing faith in a fair investigation.
The core of the accusations is the nature of a Ponzi scheme, which is defined as offering large returns to investors with little risk in exchange for using fresh investments to pay off previous investors. In this instance, it is claimed that the offenders gathered almost ₹6,600 crore in Bitcoins in 2017 by tricking investors into believing they would receive 10% monthly returns on their Bitcoin investments. According to the ED, the defendants hid these illegal gains in anonymous online wallets.
Raj Kundra is a crucial figure in the inquiry because of his alleged involvement in the ‘Gain Bitcoin’ Ponzi scam and the fact that he received 285 Bitcoins from Amit Bhardwaj. These Bitcoins, which are today worth more than ₹150 crore, were left in Kundra’s control when the sale fell through. They were meant to be used to start a Bitcoin mining farm in Ukraine.
This new discovery compounds Kundra’s legal problems, as he was already detained in 2021 in relation to the creation and release of pornographic videos through the use of the “Hotshots” smartphone app, which required a subscription. Even though the Supreme Court granted Kundra bail in that particular instance, he is now the subject of yet another prominent inquiry.
The ED’s seizure of assets highlights the seriousness of the problem as the inquiry progresses, illuminating the complex web of financial transactions and purported criminal activity. The case is still gaining attention, with many keeping a close eye on developments and Kundra and Shetty strongly disputing any wrongdoing. It also highlights the intricate relationship between financial malfeasance, cryptocurrencies, and Bollywood.
To sum up, the action taken by the ED is a significant step toward disentangling the details of the Bitcoin Ponzi scheme, thereby casting doubt on the credibility of the individuals implicated and emphasising the necessity of strong regulatory control in the cryptocurrency investment space.
