India's biggest Crypto Scam where investors lost Rs 1 Lakh Crore! 🤯
GainBitcoin Scam ⤵️
#cryptocurrencies #bitcoins
GainBitcoin Scam ⤵️
#cryptocurrencies #bitcoins
GainBitcoin scam was a crypto ponzi scheme busted in march 2018.
According to sources, over 1 lakh victims may have lost more than Rs 1 Lakh Crore in the GainBitcoin fraud, which shocked the nation a while back.
According to sources, over 1 lakh victims may have lost more than Rs 1 Lakh Crore in the GainBitcoin fraud, which shocked the nation a while back.
Like many other Ponzi scams, GainBitcoin had a pyramid-style, multi-tiered structure, with Amit Bhardwaj, the master mind at the top and his "Seven Stars" in charge.
How the scheme worked? 🤔
He promised 10% returns every month on the investment in bitcoins for 18 months!
The promised returns and repayment was also in bitcoin.
He promised 10% returns every month on the investment in bitcoins for 18 months!
The promised returns and repayment was also in bitcoin.
Bhardwaj deliberately constructed a background to demonstrate his technological knowledge in the field.
He begun his career at one of India's top IT firms, Infosys. Then, he quit Infosys and began his Bitcoin business.
He begun his career at one of India's top IT firms, Infosys. Then, he quit Infosys and began his Bitcoin business.
How did he convince investors?
- He used multilevel marketing system (MLM), with his ‘seven stars’ who used to operate it under him.
- Appointed Bollywood celebrities to promote GainBitcoin scheme.
- He used multilevel marketing system (MLM), with his ‘seven stars’ who used to operate it under him.
- Appointed Bollywood celebrities to promote GainBitcoin scheme.
- The scheme had coincided with the Bull Run of over two-three years and due to the promise of lucrative returns, people were lured to lend Bitcoins to the organization.
In 2017, he started facing pressure to return investors' money!
But he did not want to do that. So, he invented his own crypto - "MCAP" & convinced everyone that MCAP had better growth potential than Bitcoin.
He started making repayments using MCAP.
But he did not want to do that. So, he invented his own crypto - "MCAP" & convinced everyone that MCAP had better growth potential than Bitcoin.
He started making repayments using MCAP.
In the same year, he took all bitcoins and shifted to Dubai (operated there) and then to Thailand.
But soon the scam got discovered as a lot of FIRs were filed against Amit Bharadwaj and Ajay Bharadwaj (co-founder of GainBitcoin)
Maharashtra govt. asked ED to investigate it, and later, they were arrested at Delhi international airport by Pune police in march 2018.
Despite increasing awareness and regulations, investors continue to fall for such traps.
Even senior citizens and conservatives investors who are otherwise wary of investing in well-regulated equity funds, find the lure difficult to resist.
Even senior citizens and conservatives investors who are otherwise wary of investing in well-regulated equity funds, find the lure difficult to resist.
How to identify red flags in any investment scheme? ⛳️
- Schemes offering extra-ordinary returns should not be trusted blindly.
- No instruments can offer you a high yet guaranteed return. Avoid the scheme completely, if it is marketed using terms like assured or guaranteed.
- Schemes offering extra-ordinary returns should not be trusted blindly.
- No instruments can offer you a high yet guaranteed return. Avoid the scheme completely, if it is marketed using terms like assured or guaranteed.
- Any scheme whose returns cannot be accessed on public platforms should be avoided.
- If the companies, intermediaries and the schemes are not well-regulated, you should remain alert.
- If the companies, intermediaries and the schemes are not well-regulated, you should remain alert.
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