GainBitcoin Scam: What India’s CBI Found, and the Red Flags to Spot

Last updated: October 29, 2026. By Mbatia Muitungu.

Not financial or legal advice: This scam alert is based on statements from India’s Central Bureau of Investigation (CBI) and news reports. The people named are accused, not convicted, and the cases are ongoing. Crypto is volatile and you can lose all of it.

India’s Central Bureau of Investigation made its first arrest in the GainBitcoin case on March 10, 2026, almost a decade after the alleged Ponzi scheme started taking deposits. The CBI described it in February 2025 as a ₹6,600-crore fraud. The scheme’s pitch, 10% a month in Bitcoin for 18 months, is a pattern that still shows up in crypto scams today, including ones aimed at US investors.

Key takeaways

• GainBitcoin was launched in 2015 through a company called Variabletech Pte. Ltd., according to the CBI. Investors were told to buy Bitcoin and deposit it into “cloud mining” contracts promising 10% a month.
• Payouts depended on recruiting new investors, the CBI said. When the scheme collapsed in 2017, it switched payouts to its own token, MCAP, which was worth far less.
• India’s Supreme Court moved cases from several states to the CBI in December 2023. The CBI searched more than 60 locations in February 2025 and arrested a key accused in March 2026.
• Guaranteed monthly returns, pay-for-referral structures and payouts switched into a house token are classic red flags.

What investigators say happened

According to the CBI’s statements reported by The Hindu and The Indian Express in February 2025, GainBitcoin was launched in 2015 by Amit Bhardwaj (now deceased), with his brother Ajay Bhardwaj and a network of agents, through websites including gainbitcoin.com. The scheme promised 10% monthly returns in Bitcoin for 18 months.

Investors were told to buy Bitcoin on outside exchanges and send it to GainBitcoin under “cloud mining” contracts. The CBI said the model followed a multi-level marketing structure, with payouts dependent on bringing in new investors. As the scheme collapsed in 2017, it switched payouts to MCAP, an in-house token worth much less than Bitcoin.

The Enforcement Directorate, which is investigating the money-laundering side, has alleged that the accused collected about 80,000 Bitcoin from investors, The Hindu reported. The ED has attached properties in India and abroad, including six offices in Dubai.

The investigation so far

• December 13, 2023: India’s Supreme Court ordered that the GainBitcoin FIRs (police complaints) from various states be investigated by the CBI as a single agency, according to the CBI.
• February 25-26, 2025: The CBI searched more than 60 locations in Delhi, Maharashtra, Karnataka, Punjab, Chandigarh and Uttar Pradesh. It reported seizing crypto worth ₹23.94 crore, hardware wallets, 34 laptops or hard disks and 12 phones, The Hindu reported.
• March 10, 2026: The CBI arrested Ayush Varshney, co-founder and CTO of Darwin Labs Private Limited, after immigration officers stopped him as he tried to leave India, according to the CBI’s press release. The CBI alleges Darwin Labs built the scheme’s technology, including the MCAP token contract, the GBMiners.com mining pool platform and the GainBitcoin website.

ThePrint reported in March 2026 that the scam is now estimated at Rs 20,000 crore or more, citing agency sources, and that Ajay Bhardwaj and Mahender Bhardwaj remain absconding. The CBI says the investigation is ongoing. No one named here has been convicted in the CBI case.

Why this matters to you

GainBitcoin was an Indian case, but nothing about the pitch was local. The same ingredients show up in scams reported to US regulators and the FBI: fixed high monthly returns, a mining or trading story you can’t verify, bonuses for recruiting friends and a switch to the platform’s own token when withdrawals get hard. Americans reported $7.23 billion in crypto investment fraud losses to the FBI in 2025.

Red flags to watch for

The SEC’s investor education site lists warning signs for Ponzi schemes. These line up closely with what investigators describe in GainBitcoin:

• Guaranteed high returns with little or no risk. Real investments go up and down. A fixed 10% a month is about 214% a year when compounded.
• Overly consistent returns, regardless of what the crypto market is doing.
• Unregistered investments and unlicensed sellers. Ask who is offering the investment and check whether they’re registered.
• Secretive or complex strategies, such as “cloud mining” you can’t inspect.
• Rewards for recruiting. If your returns depend on bringing in new investors, the money is coming from them.
• Trouble withdrawing, including being paid in a new token instead of the Bitcoin you deposited.

What to do if you’re targeted

1. Stop sending money, including “fees” or “taxes” to release a withdrawal.
2. Save screenshots, wallet addresses, transaction IDs and chats.
3. In the US, report it to the FBI at ic3.gov and to the SEC or CFTC if it was pitched as an investment.
4. Be wary of “recovery” services that contact you promising to get your crypto back for a fee. That’s a common second scam.

Sources

Checked October 29, 2026:

• Official (CBI via PIB): CBI arrests key accused in GainBitcoin cryptocurrency scam (March 11, 2026)
• News: The Hindu: CBI seizes cryptocurrencies worth ₹23.94 crore in GainBitcoin scam
• News: The Indian Express: CBI searches 60 places in Rs 6K-cr crypto scam
• News: ThePrint: CBI makes first arrest in Rs 20,000-cr Bitcoin scam
• US regulator: Investor.gov (SEC): Ponzi schemes
• US regulator: Investor.gov (SEC): Digital asset and crypto investment scams
• FBI: 2025 Internet Crime Report (IC3)

This article is for general information only and is not financial or legal advice.