The Supreme Court of India has formally requested the Central Government to respond to a petition seeking the establishment of a Special Investigation Team (SIT) to probe the GainBitcoin cryptocurrency scam, which allegedly involves over 200,000 Bitcoins. The case, referred to as Gautam Mahendrakumar Chordia Vs Union of India, was addressed by a bench led by Chief Justice of India Surya Kant, alongside Justices Joymalya Bagchi and V Mohana. The bench has called for the government’s input on consolidating all First Information Reports (FIRs) filed nationwide concerning the scam.
The petition was initiated by seven founding members of the Bitcoin Investors Protection Society (BIPS), with Gautam Mahendrakumar Chordia at the forefront. Representing 273 victims, the petitioners assert that records from the Directorate of Enforcement (ED) indicate that the scam affected over 100,000 investors across India.
The GainBitcoin scheme allegedly enticed investors by promising assured monthly returns through supposed cloud-mining operations. It has been claimed that the accused managed investor dashboards, wallet infrastructure, and exchange pathways to siphon assets via proxy wallets, foreign-linked accounts, and cryptocurrency exchanges.
According to the petition, over 35 FIRs have been registered across India over the past decade. However, significant assets remain unrecovered, and several key individuals accused in the scam are reportedly on the run.
The petitioners proposed that an SIT, headed by a retired High Court judge, should be established. The team should include senior officers from the Central Bureau of Investigation (CBI) and the ED, a nominee from the Ministry of Electronics and Information Technology, and independent blockchain forensic experts. The SIT would be tasked with investigating all FIRs related to the GainBitcoin, Variable Tech, and GB Miners scams, regardless of where the FIRs were filed. Additionally, the team would focus on tracing, freezing, and recovering cryptocurrencies, and investigating shell entities and proxy accounts, with regular reports submitted to the Supreme Court.
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The petitioners referenced a December 13, 2023, Supreme Court order that transferred multiple GainBitcoin cases to the CBI, permitting the CBI to consolidate FIRs for further investigation. However, the CBI reportedly clubbed only ten FIRs, maintaining that it wasn’t responsible for cases beyond those specified in the Supreme Court’s order. This situation allegedly led to a “jurisdictional vacuum,” where the CBI disclaimed responsibility for certain FIRs, while State Police authorities ceased their investigations, assuming the cases had been handed over to the central agency.
The petition also demands the arrest and custodial interrogation of Ajay Bhardwaj, Vivek Bhardwaj, and Mahender Bhardwaj, who are alleged to be the masterminds behind the scam. Furthermore, it seeks directives to secure roughly ₹7,404 crore connected to Ajay Bhardwaj and ₹1,969 crore linked to Vivek Bhardwaj. Advocate K Krishna Mohan represented the petitioners in this case.
