Indian authorities have arrested a suspect linked to the long-running GainBitcoin crypto fraud, a scheme investigators say misappropriated billions in digital assets. The arrest marks a new phase in a case that has shaped India’s approach to cryptocurrency enforcement.
India’s Central Bureau of Investigation confirmed the arrest of Ayush Varshney on March 10 after immigration officers intercepted him at Mumbai airport while he was allegedly attempting to leave the country. Investigators say Varshney helped develop the technical infrastructure behind the GainBitcoin investment scheme operated by Variabletech Pte. Ltd..
How Did The GainBitcoin Scheme Operate For Years?
Authorities allege that companies tied to the operation built multiple platforms used to attract investors with promises of high cryptocurrency returns. These reportedly included the GBMiners.com mining service, a Bitcoin payment gateway, the CoinE Bank wallet system, and an investor portal tied to the GainBitcoin brand.
According to investigators, the infrastructure also included an ERC-20 token known as MCAP developed through the technology firm Darwin Labs. The platforms allegedly encouraged investors to deposit funds into mining and crypto investment plans that ultimately functioned as a large-scale pyramid structure.
Local media estimates suggest the scheme misappropriated roughly ₹20,000 crore in assets and involved 29,000 mined bitcoins now valued at more than $2 billion. Could one of the largest alleged crypto frauds in India reveal how early mining narratives were used to attract retail investors?
CNBCTV18.com March 11, 2026, 2:35:40 PM IST (Updated)
The investigation has unfolded for years. Amit K. Bhardwaj was arrested in 2018 during an earlier phase of the probe, which also implicated associates including his brother Ajay. Authorities at the time also detained other Darwin Labs co-founders, including Sahil Baghla and Nikunj Jain.
The latest arrest follows a December 13, 2023 directive from the Supreme Court of India instructing the CBI to expand its investigation into multiple GainBitcoin-related complaints filed across Indian states.
Investigators are now reviewing additional transaction records and infrastructure tied to the scheme’s operations. The next phase of the case will likely focus on tracing crypto flows connected to the alleged network as authorities determine whether further arrests or asset seizures will follow.
