Darwin Labs Co-Founder Ayush Varshney Arrested in ₹20,000 Crore GainBitcoin Crypto Fraud Probe

Authorities have taken action in one of India’s major cryptocurrency fraud investigations with the arrest of Ayush Varshney, co-founder and Chief Technical Officer of Darwin Labs Private Limited, in connection with the alleged ₹20,000 crore GainBitcoin investment scheme.  

The arrest was made by the Central Bureau of Investigation (CBI) as part of an ongoing nationwide probe into the case. 

Supreme Court-Directed Investigation Into GainBitcoin Scheme 

The probe is being conducted following a Supreme Court directive dated December 13, 2023, which transferred multiple cases linked to the GainBitcoin operation to the CBI. The investment programme, allegedly operated through Variabletech Pte. Limited, attracted investors by offering unusually high cryptocurrency returns. 

Participants were promised 10% monthly returns for a period of 18 months on Bitcoin deposits. While investors initially received payouts, payments later slowed and were delayed, raising suspicions over the sustainability of the operation. 

Technology Network Behind the Scheme 

Investigators identified Darwin Labs Private Limited and its co-founders Ayush Varshney, Sahil Baghla and Nikunj Jain as individuals allegedly involved in developing the digital systems supporting the operation. 

According to the agency, Darwin Labs built the technology ecosystem that powered the platform. This included the Bitcoin mining pool platform GBMiners.com, a Bitcoin payment gateway, the Coin Bank Bitcoin wallet, and the GainBitcoin website used by investors. The firm was also allegedly involved in creating the MCAP cryptocurrency token and its ERC-20 smart contract infrastructure. 

Arrest at Mumbai Airport After Look Out Notice 

Varshney had reportedly been evading investigators, leading authorities to issue a Look Out Circular. On March 9, immigration officials stopped him at Mumbai airport while he attempted to leave the country. He was subsequently handed over to the CBI and formally arrested the next day. 

The fraudulent platform was originally launched in 2015 by Amit Bhardwaj, a computer science graduate from Maharashtra, along with associates. Bhardwaj passed away on January 15, 2022. Authorities allege that after payment delays began, the operators introduced their own cryptocurrency MCAP token, presenting it as a strong digital asset. 

Read More: Banks Collect ₹19,000 Crore From Minimum Balance Penalties in 3 Financial Years! 

Conclusion 

The arrest forms a key step in the ongoing investigation into the large-scale GainBitcoin cryptocurrency fraud, as authorities continue examining the individuals and technology involved in the alleged ₹20,000 crore scheme.

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