Bitcoin scam: Delhi businessmen lost Rs. 7cr+
What's the story
In what is already suspected to be a massive scam involving thousands of crores, two Delhi-based businessmen said that they were scammed off Rs. 4.4cr and Rs. 3cr respectively by in-custody ace conman Amit Bhardwaj.
Bhardwaj had scammed the two on the pretext of selling them Bitcoin mining set-ups, and promising returns of over 150% on their investments.
Here's more about the scam.
Early career
Bhardwaj was an Infosys engineer before his scamming days
A computer engineer, Amit Bhardwaj worked for Infosys for three years, and for Hyderabad-based Reasoning Global for another year, before starting his scamster journey.
After a brief attempt at software development, Bhardwaj founded India's first bitcoin-accepting online retailer company - HighKart.com in 2012.
In 2016, he set up an umbrella company called Amaze Miners and Blockchain Research Ltd., and thus begins his scam story.
Unreal promises
What Amit Bhardwaj promised his investors
Bhardwaj founded multiple companies such as GainBitcoin, CoinBank, GB Miners, and Amaze Miners under the umbrella company.
In late 2016, he launched several multi-level marketing businesses promising a significantly high monthly return of 10% for every investment for 18 months.
Bhardwaj took investments in the form of bitcoins, and promised returns via the same.
Soon, hundreds of investors started taking up his offer.
Quote
Amit Bhardwaj tried to do the impossible and failed
"Amit took the money in Bitcoin and promised to return 10% in Bitcoin. This was not just an inflated idea but actually a fraud idea. No one can return more Bitcoins than they actually collect," explained a person close to GB Miners.
Bhardwaj's escape
Bhardwaj fled India when faced with the burden of payouts
With investors pouring in and investing in Bhardwaj's endeavors in bitcoin, his pool grew significantly.
However, it didn't matter how big Bhardwaj's mining pool was as it wasn't enough to outpace the number of investors pouring in - simply speaking, Bhardwaj was burdened with payouts to investors which were beyond his financial capabilities and earnings.
When faced with this reality, he fled India.
Do you know?
Bhardwaj's bitcoin scam is expected to be over Rs. 2,000cr
In between late 2016 and mid-2018, it's estimated that Bhardwaj and his associates duped over 8,000 people and stole money worth Rs. 2,000cr. Although Bhardwaj is in custody now, the question of whether investors will get their money back hangs heavy in the air.
Arrest
Bhardwaj is currently in the custody of Pune Police
The new complaints lodged by the two Delhi traders top a long list of complaints against Bhardwaj.
In April, Bhardwaj, a resident of Shalimar Bagh, was arrested by Pune Police at the Indira Gandhi International Airport where he had landed from another country.
Bhardwaj had been absconding till before the arrest and is currently in Pune, answering to allegations against him.