CBI charges seven in ₹350 crore Bitcoin scam.

In a case involving digital currency Ponzi schemes that promised large returns and involved cryptocurrency transactions totaling more than Rs 350 crore, the Central Bureau of Investigation on Friday charged seven individuals.

Ten sites in seven states and union territories were searched by the agency. Several gadgets and pieces of damning digital evidence were found during the searches, including digital virtual assets worth about USD 38,414 in bitcoin wallets and cash worth Rs 34 lakh.

The CBI has filed a case against seven accused people, who are based in the cities of Delhi, Hazaribag, Bathinda, Ratlam, Valsad, Pudukkottai, and Chittorgarh, under Section 120B of the Indian Penal Code (IPC), Section 420 of the IPC, and Section 66D of the Information Technology Act, 2000. The defendants allegedly engaged in criminal conspiracy by actively promoting a number of fraudulent and Ponzi schemes that promised large returns on cryptocurrency investments.

To lure investors into these unregulated deposit schemes—which function without the necessary permits from regulatory bodies like the Reserve Bank of India (RBI)—they are also charged with advertising, making promises, and spreading misleading and deceptive information.

Ten locations in seven States/Union Territories—Delhi, Jharkhand, Punjab, Madhya Pradesh, Gujarat, Tamilnadu, and Rajasthan—were searched by the CBI as part of the inquiry. Significant digital evidence, including seven cell phones, one laptop, one tablet, three hard drives, ten pen drives, memory cards, SIM cards, ATM/debit cards, email accounts, and numerous incriminating documents, were found during the searches, along with cash totaling approximately Rs 34.2 lakh.

Additionally, the accused individuals’ bitcoin wallets, which have been digitally protected for investigation, were virtually confiscated, totaling about USD 38,414 in digital virtual assets.

Several social media groups were promoting these Ponzi schemes. The illicit gains from these scams were being transformed into cryptocurrencies to hide their source, according to an examination of bank account activities and cryptocurrency wallets.

The accused has several bank accounts and Virtual Digital Asset (VDA) wallets with cryptocurrency exchanges, such as CoinDCX, WazirX, Zebpay, and BitBns, according to investigations. Transactions of more than Rs 350 crore were made through these wallets and accounts over a two-year period. Allegedly, the victims were cheated under a variety of guises, including Internet banking scams, UPI frauds, online loans, and online fortunate orders.