The Enforcement Directorate (ED) has seized properties worth Rs. 97.79 Crore belonging to Raj Kundra in probe linked to a Bitcoin Ponzi scam. Raj Kundra is the husband of actor Shilpa Shetty.
A Ponzi scheme is a fraud where investors are promised bif profit at little or no risk. But the money is not invested. Instead, the conman focuses on luring more people and pays profits to the initial investors with funds from more recent ones.
The ED launched a probe based on multiple complaints filed by Maharashtra and Delhi Police against Variable Tech Private Limited, late Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, Mahender Bhardwaj and others.
The investigation alleges that the accused collected approximately Rs 6,600 Crore in Bitcoins in 2017 by deceiving investors with promises of 10% monthly returns through Bitcoin investments.
During investigation, the probe agency learnt that Raj Kundra had received 285 Bitcoins from Amit Bhardwaj, the mastermind behind the Gain Bitcoin Ponzi scheme. These Bitcoins were intended for establishing a Bitcoin mining farm in Ukraine. However, the deal did not materialize, leaving Mr Kundra in possession of the Bitcoins, currently valued at more than Rs 150 Crore.
The attached properties include a residential flat located in Juhu, currently registered in the name of actress Shilpa Shetty, a residential bungalow in Pune, and equity shares owned by Raj Kundra.
