ED seizes Raj Kundra’s ₹97.79 cr assets over possession of bitcoins worth ₹150 cr to set up Ukraine mining farm

The Enforcement Directorate (ED) on Thursday attached immovable and movable properties worth ₹97.79 crore belonging to Raj Kundra under the Prevention of Money Laundering Act (PMLA).

The attached properties include a residential flat in Juhu registered in Shilpa Shetty’s name, a residential bungalow situated in Pune, and equity shares in the name of Raj Kundra.

The ED launched an investigation based on multiple First Information Reports (FIRs) filed by both the Maharashtra Police and the Delhi Police against Variable Tech Pte Ltd and various MLM agents.

“It has been alleged that they had collected huge amounts of funds in the form of Bitcoins (worth ₹6,600 Crore in 2017 itself) from the gullible public with the false promises of 10% per month return in the form of Bitcoins,” the ED said.

The ED investigation further revealed that “Raj Kundra received 285 Bitcoins from the mastermind and promoter of Gain Bitcoin ponzi scam Amit Bhardwaj for setting up a Bitcoin mining farm in Ukraine”.

Bitcoins were sourced out of proceeds of crime collected by Amit Bhardwaj from gullible investors. “Since the deal didn’t materialize, Kundra is still in possession and enjoyment of 285 Bitcoins which are presently valued at more than Rs. 150 Crore,” the ED said in an official release.

Earlier, multiple Search operations were carried out in this case and three persons--Simpy Bhardwaj, Nitin Gaur, and Nikhil Mahajan-- were arrested.

The main accused, Ajay Bhardwaj and Mahendra Bhardwaj, are still absconding, the ED informed.

The promoters of Gain Bitcoin ponzi scheme cheated the investors and concealed the ill-gotten Bitcoins in obscure online wallets, the ED alleged.