India’s Central Bureau of Investigation (CBI) has arrested Ayush Varshney, co-founder and chief technology officer of Darwin Labs Private Limited, in connection with the long-running GainBitcoin cryptocurrency fraud investigation.
According to a Wednesday press release shared via the CBIs official X account, Varshney was detained at Mumbai airport on Monday while attempting to leave India after a Look Out Circular had been issued against him. He was formally arrested and handed over to the CBI on Tuesday.
The CBI said Darwin Labs played a central role in building the technological infrastructure used by the alleged scheme, including the GainBitcoin investor platform and associated tools used to manage payments and wallets.
The arrest is the latest development in India’s investigation into the multi-million-dollar GainBitcoin scheme, one of the country’s largest alleged cryptocurrency investment frauds.
Source: CBI IndiaInvestigators link developer to infrastructure behind alleged scheme
According to the CBI, the GainBitcoin scheme was promoted through Variabletech Pte. Ltd. and allegedly promised investors monthly returns of about 10% in Bitcoin (BTC) for up to 18 months. “The funds collected from investors were subsequently misappropriated,” the CBI said.
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The agency said Darwin Labs and its co-founders, including Varshney, Sahil Baghla and Nikunj Jain, were involved in designing and deploying a cryptocurrency token known as MCAP along with its associated ERC-20 smart contract.
CBI added that the company also helped develop key components of the platform’s technical infrastructure, including the GBMiners.com mining pool, a Bitcoin payment gateway, the Coin Bank Bitcoin wallet, and the GainBitcoin investor website used to interact with participants.
Decade-old case involved 8,000 investors and $790 million
GainBitcoin emerged in the mid-2010s as a cloud-mining investment platform that encouraged users to purchase Bitcoin and deposit it with the service in exchange for promised fixed returns.
The CBI alleged that the scheme eventually relied on a multi-level marketing structure in which payouts were tied to recruiting new investors. As new deposits slowed, the platform reportedly shifted payouts from Bitcoin to its in-house MCAP token, which had a significantly lower value.
The operation was allegedly masterminded by Amit Bhardwaj, a prominent early Bitcoin promoter in India who died in 2022 while out on bail.
On Feb. 26, 2025, Indian authorities conducted searches at more than 60 locations as part of the investigation into the GainBitcoin scheme.
Investigators have previously said the case involves 8,000 investors, with estimated losses reported by authorities ranging from about 6,606 crore Indian rupees (roughly $790 million).
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Source: https://cointelegraph.com/news/india-arrests-darwin-labs-co-founder-in-gainbitcoin-scam-probe?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
