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Co-founder of Darwin Labs Arrested in India Over $790 Million Cryptocurrency Scheme, 2026/03/12 11:01:35
The Central Bureau of Investigation (CBI) of India has apprehended Ayush Varshney, a co-founder of Darwin Labs, as part of the inquiry into the GainBitcoin cryptocurrency scheme, which has incurred losses estimated at around $790 million.
According to the CBI, Darwin Labs played a significant role in developing the technological infrastructure utilized in the GainBitcoin project.
This includes the mining pool GBMiners.com, the MCAP token, a payment gateway for Bitcoin transactions, the Coin Bank cryptocurrency wallet, and the GainBitcoin website, through which investors engaged with the platform.
The scheme itself, as per the investigation, was promoted via Variabletech Pte. Ltd. Investors were promised returns of approximately 10% per month in Bitcoin for a duration of up to 18 months. However, the funds raised, according to the investigation, were ultimately misappropriated by the organizers.
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The CBI reports that around 8,000 investors may be involved in the case, with total losses estimated at about 6,606 crore Indian rupees (approximately $790 million).
The GainBitcoin platform emerged in the mid-2010s and was marketed as a cloud mining service. Users were encouraged to purchase Bitcoin and deposit it into accounts on the platform in exchange for a fixed return.
According to the investigation, the project operated on a multi-level marketing model: payouts to participants depended on attracting new investors. As the influx of funds began to decline, the platform allegedly started converting payouts from Bitcoin to the MCAP token, which had a significantly lower value.
The alleged mastermind behind the scheme is identified by the investigation as Amit Bhardwaj, a known advocate for Bitcoin development in India. He passed away in 2022 while out on bail.
Previously, the Enforcement Directorate (ED) conducted numerous searches in the states of Karnataka, Maharashtra, and Delhi as part of the investigation into the cryptocurrency project that had been operational since 2015.
