Bitcoin scam: Director of GainBitcoin firm booked by Chandigarh police
The cyber cell of Chandigarh police has booked six people, including the director of GainBitcoin, an online multi-level marketing company, Amit Bhardwaj, who was arrested from Delhi by the Pune police last month in connection with an alleged multi-crore Bitcoin Ponzi scheme. Bhardwaj has been charged with duping three residents of Chandigarh after promising them handsome returns on investing in Bitcoin.
The director along with his brother were arrested last month
"A case has been registered against him. In all, six people have been booked," Cyber Cell In-charge Inspector Jaswinder Singh said on Wednesday. Amit Bhardwaj, the director of the company named GainBitcoin, and his brother Vivek Kumar Bhardwaj were arrested from Delhi by the Pune Police in April after they picked up seven people in connection with the alleged scam.
Amit Bhardwaj allegedly lured investors by promising them handsome returns
Amit Bhardwaj set up GainBitcoin through which he allegedly lured investors by promising them handsome returns. He allegedly promised 10% returns for investing one Bitcoin but didn't keep his word. People were motivated by some agents to invest in bitcoins through Amit and once they invested with his company, he duped them, police said, adding this way he duped three residents of Chandigarh.
Investigation is underway in the matter
On the amount duped from the three people in Chandigarh, Jaswinder Singh said, "We're conducting investigations in this regard." Bitcoin is a type of unregulated digital money that is issued and normally controlled by its developers and used and accepted among the members of a virtual community. Bitcoins are not a legal tender in India and are not recognized as a medium of exchange.