Key Highlights
- ₹20,000 crore GainBitcoin scam anchors India’s largest crypto fraud, with recovery still under 2% after years of investigation.
- Pune has emerged as India’s crypto scam hub, with Ponzi schemes, digital arrest frauds, and global laundering networks.
- Weak cyber policing, slow investigations, and low digital awareness continue to fuel rising crypto fraud cases.
As an analyst tracking financial crime, Pune isn’t the first place that comes to mind when I think about cryptocurrency fraud. Most people associate the city with education, tech, and a comfortable retirement destination. However, my research over the last ten years shows Pune has become the leading source of crypto scam cases in all of India – it’s been a surprisingly significant hub for this type of crime.
It’s not immediately clear why, but Pune has become a hotspot for cryptocurrency fraud. While it’s neither India’s financial center nor its biggest tech city, it has a particular combination of circumstances that make it attractive to scammers. These include a large number of retirees with significant savings but limited knowledge of online security, a growing IT sector, underfunded cybercrime law enforcement, and connections to international money laundering operations. This creates opportunities for both large-scale Ponzi schemes worth billions of rupees and smaller scams targeting vulnerable seniors.
This report details the cryptocurrency scams that have made Pune a hotspot for fraud in India, the resulting investigations, and the ongoing weaknesses that leave the city vulnerable to these crimes.
The GainBitcoin ponzi scheme: India’s largest crypto fraud
When discussing cryptocurrency fraud in Pune, it’s impossible to start anywhere but with GainBitcoin. Authorities believe this was a Ponzi scheme worth around ₹20,000 crore, involving roughly 29,000 Bitcoins.
How GainBitcoin Operated
In 2015, Amit Bhardwaj, a former Infosys employee and early Bitcoin advocate, started a scheme promising high returns. Through his Singapore-based company, Variabletech Pte. Ltd., he offered investors a 10% monthly profit in Bitcoin for 18 months, claiming it was based on cloud-mining contracts.
The scheme operated like a traditional pyramid scheme, where investors were incentivized to bring in new recruits. At the top of this network was Bhardwaj, along with his group of leading agents, known as the “Seven Stars,” who managed operations both in India and internationally. The police investigation identified Bhardwaj’s brothers, Ajay and Vivek Bhardwaj, and associates Sahil Baghla and Nikunj Jain as central figures in the fraud.
Pune Police investigations revealed that Amit and Vivek Bhardwaj founded Variabletech in Singapore in 2014. They initially created a cryptocurrency exchange called BitEx, and then launched GainBitcoin, a multi-level marketing scheme that promised returns through Bitcoin mining. Police have identified over 60,000 user accounts and email addresses linked to this fraudulent activity.
The scale of losses
Investigators found that Bhardwaj likely gathered between 385,000 and 600,000 Bitcoins, which would be worth over ₹1 lakh crore at its highest value. Across India, more than 40 criminal cases have been filed – over 13 of them in Maharashtra – and it’s believed almost 100,000 people may have been impacted.
In April 2018, Pune Police arrested Bhardwaj, along with his brothers and co-founders of GB Miners, accusing them of operating a $300 million Ponzi scheme involving cryptocurrency. Bhardwaj was released on bail but tragically died of a heart attack on January 15, 2022, at the age of 38, and the investigation remains open.
Variabletech and its owners faced several legal complaints filed at police stations in Pune (Dattawadi and Nigdi). These complaints, made under Indian law, covered offenses related to fraud, protecting investors, and IT crimes.
When the Forensic auditors stole the evidence
In a surprising turn of events that revealed a flaw in the investigation, the cybersecurity experts Pune Police hired to investigate the GainBitcoin case actually stole cryptocurrency from the wallets they had seized as evidence.
In 2018, Pune Police hired KPMG to investigate the case as a forensic auditor. Two specialists, Pankaj Ghode and Ravindranath Patil, a former police officer from Jammu and Kashmir, helped analyze the blockchain data. Working with them, Pune Police initially confiscated 241.46 Bitcoins, 452 Bitcoin Cash, and 94 Ethereum from the 17 people arrested in connection with the case.
Police investigations revealed that Ghode reportedly moved 900 Bitcoins from the police’s digital wallet to his personal account, and Patil was accused of stealing 237 Bitcoins. Both men were arrested in March 2022 after an internal investigation began in 2020, ordered by a Pune Police official. They were charged with using fake screenshots of their wallets to hide the stolen cryptocurrency. Authorities were only able to recover about ₹6 crore (Indian Rupees) worth of cryptocurrency from them.
The stealing didn’t end with the initial theft. In January 2026, Mumbai Police arrested Gaurav Mehta, a 31-year-old software developer who worked as a director at Sarath & Associates – the company later hired to investigate the crime. Police discovered Mehta had improperly used his access to the crypto wallets that were seized during the investigation. His digital wallet records on TRONSCAN showed around $9 million in suspicious transactions. Authorities claim Mehta used VPNs and techniques to hide the movement of approximately ₹30 crore.
Where the CBI investigation stands today
Because of the large size of the fraud case, the Supreme Court moved all investigations related to GainBitcoin to the CBI in December 2023.
In February 2025, the CBI raided over 60 places across India, including major cities like Delhi, Pune, and Bengaluru. They confiscated cryptocurrency valued at ₹23.94 crore, as well as digital wallets, documents, computers, and mobile phones.
On March 9, 2026, the CBI made its first significant arrest related to the case. Ayush Varshney, a co-founder and the Chief Technology Officer of Darwin Labs, was stopped at Mumbai’s airport while reportedly trying to fly to Colombo, Sri Lanka. He was detained because his name was on a list alerting authorities to prevent his departure.
The CBI alleges that Darwin Labs built and launched the entire digital system powering GainBitcoin. This included the MCAP token and its underlying smart contract, the GBMiners.com mining pool, a system for Bitcoin payments, the Coin Bank wallet, and the GainBitcoin website used by investors.
The Raj Kundra connection
The Enforcement Directorate’s investigation expanded to include connections within the Bollywood film industry. In April 2024, the agency seized assets worth ₹97.79 crore belonging to Raj Kundra. These assets included a Mumbai apartment registered under his wife, Shilpa Shetty’s name, a bungalow located in Pune, and various shares of stock.
According to investigators, Vikram Kundra received 285 Bitcoins from Bhardwaj to establish a Bitcoin mining operation in Ukraine, but this plan never came to fruition. Kundra still holds these Bitcoins, which are now worth over ₹150 crore, the agency stated.
The Enforcement Directorate had previously seized assets worth ₹69 crore related to this case. Their investigation also showed that cryptocurrencies like Bitcoin, Ethereum, USDT, and TRON were used for illegal money transfers connected to those running GainBitcoin.
Ajay and Mahender Bhardwaj, the main suspects, are still missing. The Enforcement Directorate is working with foreign governments to find money linked to the alleged crime.
What has actually been recovered
Even after over eight years of investigation by several agencies, very little of the stolen money has been recovered in the GainBitcoin fraud case, especially considering how large the fraud was.
Authorities have seized assets worth over ₹374 crore in connection with this case. This includes approximately ₹166 crore in attached properties, ₹23.94 crore in cryptocurrency seized by the CBI in February 2025, and ₹84 crore worth of Bitcoins recovered by Pune Police that were stolen by forensic auditors. To manage these seized digital assets, the Enforcement Directorate is working with the crypto exchange CoinDCX.
As a crypto investor, it’s really concerning to see that even though we’re looking at losses of over 20,000 crore rupees, we’ve only managed to recover or freeze less than 2% of that amount. It feels like a tiny fraction of the stolen funds have been accounted for, and it’s frustrating to see so little progress.
Pune’s BitConnect victims: ₹42 crore lost by a single lawyer
GainBitcoin was not the only global crypto Ponzi to leave its mark on Pune.
A lawyer from Kondhwa Budruk, Pune, lost approximately ₹42 crore after investing in BitConnect, a large cryptocurrency pyramid scheme. He reported to authorities that he initially invested ₹49 lakh for 54 Bitcoins, expecting a return of 166 Bitcoins. However, he ultimately lost a total of 220 Bitcoins.
BitConnect functioned like a pyramid scheme, guaranteeing a 1% daily profit and claiming investments would double in just 100 days. The case involving the lawyer from Pune is still considered one of the largest individual losses due to cryptocurrency fraud ever reported in India.
The Bitsolives and Buxcoin scam: Another crypto MLM operated from Pune
Police have arrested the person believed to be responsible for the Bitsolives cryptocurrency scam and are investigating them in Pune. This is the latest in a series of similar fraudulent schemes linked to the city.
In December 2023, Prashant Brahmbhatt, 34, the director of Bitsolives, was arrested in Goa after traveling from Dubai. This followed a two-year investigation by the Pune City Police Cyber Crime Cell into over 10 reports of fraud connected to Bitsolives and its cryptocurrency, Buxcoin. The first complaint was filed in November 2021.
Bitsolives tricked investors with a pyramid scheme centered around a cryptocurrency called Buxcoin, falsely promising huge profits. They held events throughout India to lure people in, collected significant amounts of money, and then shut down without paying investors anything. While the company was based in Dubai, Anuj Ojha, who managed operations from Pune, and his associate Ganesh Sagar were arrested. Bitsolives and its leaders are now facing 33 fraud cases in India related to cryptocurrency.
₹10.74 crore digital arrest scam: Crypto as the exit route (January 2026)
In a recent and concerning incident, an 82-year-old resident of Pune was defrauded of ₹10.74 crore over nine days, from January 23rd to January 31st, 2026. The scam targeted the pensioner living on Bhandarkar Road.
How the Scam Worked
The victim was contacted by scammers pretending to be from TRAI, the CBI, and the courts. They falsely claimed his bank account was involved in money laundering and threatened him with immediate conviction, even putting him under what they called “digital arrest.” The fraudsters then held fake video calls, set up to look like court hearings, with people acting as a judge and a lawyer.
After being repeatedly pressured, the elderly man gave away all of his savings – including fixed deposits and money his children sent from overseas – in seven separate transfers, totaling ₹10.74 crore.
The Crypto Trail
The investigation revealed that some of the stolen funds were turned into cryptocurrency and sent through international exchanges connected to individuals in China and Hong Kong. Police Inspector Swapnali Shinde stated that officers successfully froze ₹40 lakh and recovered ₹4.78 lakh in cash.
Arrests and the Wider Network
On February 22nd, Pune Cyber Police arrested two individuals: 23-year-old Harshad Dhantole, a college student, and 24-year-old Samarth Deshmukh, who is currently unemployed. Two other suspects, Rohit Jadhav and Amar Attargi, are still at large. Investigators believe this case is connected to at least 11 cybercrime reports filed nationwide, indicating a potentially larger criminal operation.
Investigators also discovered a connection to a social media influencer based in the Marathwada region. They questioned the influencer’s girlfriend after finding some of the funds had been deposited into her bank account.
Pune call centre using crypto to launder proceeds
In July 2025, the CBI shut down a cyber fraud operation based in Pune and Mumbai. This group had been scamming people in the U.S. since January 2025, making around ₹3 to 4 crore each month.
The group operated a secret call center where they pretended to be representatives from U.S. government agencies like the IRS and immigration services, as well as the Indian High Commission. They then pressured victims into sending money – between $500 and $3,000 – using gift cards and digital currencies.
Police arrested three individuals – Amit Dube, Tarun Shenai, and Gonsalves Savio – after conducting searches in Pune and Mumbai. During the raids, they seized 27 mobile phones, 17 laptops, over ₹11 lakh in cash, about 150 grams of drugs, and a cryptocurrency wallet worth ₹6.9 lakh.
The money was cleaned up by moving it through various methods, including using other people’s bank accounts, cryptocurrency, and informal money transfer services. Investigators believe some bank employees helped open fraudulent accounts with fake identification, breaking the rules set by India’s central bank.
Ongoing Crypto Fraud Wave: Recent Cases
Reports of cryptocurrency fraud targeting people in Pune are increasing rapidly. This local trend mirrors a nationwide problem, highlighted by a recent Supreme Court decision to deny bail in a large ₹640 crore crypto scam that involved tricking people into giving up information and then hiding the stolen money through complex digital transactions.
Facebook Friendship Crypto Scam (December 2025 to January 2026)
A 66-year-old man from Pune lost over ₹21 lakh after connecting with a woman named “Ananya,” who also went by “Lavanya,” on Facebook. Over several weeks, they chatted daily, and she convinced him to use a fake cryptocurrency app. To gain his trust, she initially sent him 200 USDT and ₹60,000 to his bank account.
From January 7th to 14th, 2026, the victim sent several payments. When he attempted to withdraw his funds, the platform unexpectedly required a ₹29 lakh “processing fee.” A police report was filed at the Kothrud police station on February 5th, 2026.
Digital arrest scams demanding cryptocurrency (2025)
In May 2025, Pune Police warned the public about a rise in scams where victims were tricked into paying with Bitcoin and other cryptocurrencies to avoid a fake arrest. One resident of Pune, an IT professional, lost 1.5 lakh rupees in Bitcoin after a scammer pretending to be a Mumbai Police officer threatened them with arrest.
A retired teacher was tricked out of ₹80,000 worth of gift cards after scammers kept her on a video call, pretending to be law enforcement officials, for several hours.
As a crypto investor, I was relieved to hear the Pune Police clarify that no real police force would *ever* ask for cryptocurrency to prevent an arrest. It’s good to know they’re warning people about scams – it’s a common tactic fraudsters use, and it’s important to remember you should *never* send crypto to avoid legal issues.
Job recruitment crypto scam (2024)
Naved Alam, a 22-year-old from Pune, lost 2.5 lakh rupees worth of cryptocurrency after falling for a fake job offer. The scam started on X (formerly Twitter) when someone contacted him about a product designer position at a Web3 app called “SocialSpectra.” The scammers then led him to a Discord server and instructed him to download software that emptied his crypto wallet.
Why Pune? What makes it India’s crypto scam hotspot
For years, experts – including investigators, policymakers, and journalists – have been trying to figure out why Pune has seen so much more cryptocurrency fraud than other cities.
A retirement destination with high-value, low-awareness targets
For years, Pune has been a popular choice for people to retire in India. Its pleasant weather, good hospitals, and schools draw retirees – including former government and military workers, as well as business leaders – from all over the country. While these retirees generally have considerable savings from sources like fixed deposits, pensions, and money sent from family abroad, many aren’t familiar with cryptocurrencies or other modern digital financial tools.
Cybercrime data from Pune shows that people between 50 and 70 years old lose the most money to scams. These scams often involve fake cryptocurrency investments, threats of online arrest, and manipulative tactics that take advantage of their limited knowledge of digital currencies and online technology.
A large, digitally active but unevenly literate population
As an analyst observing the Pune tech landscape, I’m seeing a real disconnect. While Pune boasts a huge, digitally connected population thanks to places like Hinjewadi IT Park and its many colleges, that doesn’t automatically translate to strong online security practices. I’m particularly concerned about the rising number of young adults – those aged 18 to 25 – falling victim to scams. Their heavy use of social media and the influence of online personalities promoting things like cryptocurrency seem to be major contributing factors.
Severely under-resourced cybercrime infrastructure
Although around 25% of all cybercrime in India happened in Pune, the city only had one cyber police station as of late 2025. While the state government approved funding for five more stations in mid-2025, these hadn’t opened and begun operating by the end of the year.
As a researcher tracking cybercrime trends, I’ve observed a dramatic surge in online scams in Pune this year – a staggering 776% increase compared to 2023. To address this growing problem, I’ve learned that the Pune Police have proposed a significant expansion of their cybercrime fighting resources to the state government. This includes a request for an additional Commissioner of Police, six Deputy Commissioners, and two new, dedicated cyber police stations – one for the eastern part of the city and another for the west.
Proximity to international crypto laundering networks
Pune is becoming a popular hub for international fraud groups because of its well-developed banking system, global connections, and many English-speaking workers. These groups mainly use cryptocurrency to hide the money they get from illegal activities.
A raid by the CBI in July 2025 on a call center in Pune revealed how criminals are using legitimate businesses in the city to commit crimes involving cryptocurrency. The investigation, which recovered ₹10.74 crore in digital assets, showed that stolen money from India was ultimately being transferred through cryptocurrency exchanges in China and Hong Kong.
Investigations that move slower than the crimes
The biggest problem with the GainBitcoin case is how long it’s taking to resolve. The investigation has been going on for over eight years, key suspects are still missing, and even some of those handling evidence have been accused of theft. Very little of the stolen money has been recovered – less than ten percent. This situation is made worse by the lack of clear government oversight of cryptocurrencies and the complicated technology behind them, which gives scammers an easy advantage.
What authorities are doing
Indian authorities are addressing the issue in several ways, but their efforts haven’t yet caught up with how widespread the problem is.
In February 2026, the government’s PRAHAAR counter-terrorism strategy highlighted an increasing trend of criminals using cryptocurrency wallets. As a result, a special task force focused on the darknet and cryptocurrencies has been established within the Multi-Agency Centre. Separately, the CBI is investigating a ₹350 crore cryptocurrency Ponzi scheme and has conducted searches in 10 locations across seven states.
Maharashtra Chief Minister Devendra Fadnavis has announced a new “Centre of Excellence in Digital Forensics” in Pune. This center will help investigate fraud involving cryptocurrencies. Additionally, the state’s Home Department is creating a faster, partially automated system to handle current investigations more quickly.
Pune Police are now prioritizing the quick freezing of bank accounts connected to cryptocurrency as soon as a complaint is made. Officers are getting special training in this area. The police are also requesting approval from the state government for more cyber police stations and higher-ranking positions.
However, a core problem persists: it’s incredibly hard to track cryptocurrency transactions that go through decentralized exchanges, privacy coins, and accounts held in offshore locations. International collaboration to address this is often slow, and the criminals using crypto are developing their technical skills faster than law enforcement can keep up.
The bottom line
The surge in cryptocurrency scams in Pune isn’t just a series of random events. It’s a widespread issue caused by particular factors that make the city especially susceptible to this type of fraud.
Whether it’s the ₹20,000 crore GainBitcoin Ponzi scheme – which has kept investigators busy for nearly ten years – or the recent ₹10.74 crore scam targeting an 82-year-old with cryptocurrency, the results are consistently the same: victims suffer significant losses, very little money is recovered, and the fraudulent networks adapt and become more complex. The technology used for these scams is also constantly improving, making them harder to stop.
With more and more Indians using cryptocurrency, the line between legal crypto activity and criminal activity is becoming increasingly blurred. If Pune doesn’t significantly improve its ability to fight crypto-related crime, it risks solidifying its position as the center of cryptocurrency scams in India.
It’s not a matter of *if* more crypto scams will occur in Pune, but whether people will be prepared when they do.
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2026-03-28 08:39