Amit Bhardwaj the mastermind behind $ 150 million of Ponzi Bitcoin scam has offered compensation to thousands of victims who have incurred heavy losses due to the cryptocurrency scam. The investment scheme was marketed was GainBitcoin. According to a local newspaper, the mastermind has offered compensation to the Indian investors.
The scheme which was marketed worked like a multilevel marketing scheme. As a result, he was able to gain over 1 lakh investors. He promised over 10% return on a monthly basis. This is the reason why he gained so many investors. Also, soon enough he shifted his base to Dubai in spite of running a business consistently in India. He also incorporated a lot of companies all over the world including in Hong Kong, United States as well as the BritishVirgin Islands.
After the investigation, the police also found 2 of his Bitcoin wallets. The current number of Bitcoins in those wallets are 5372. At the current valuation, they are around $ 40 million.
Zebpay Questioned:
Zebpay has also been contacted by the authorities. This was the cryptocurrency exchange which was used by the mastermind. Most of the transactions in Bitcoins were conducted with the help of this cryptocurrency exchange. That is why the police have also contacted this cryptocurrency exchange in order to gain more details.
According to a police official, most of the transactions in Bitcoins were done using this cryptocurrency exchange. As a result, the officials from the cryptocurrency exchange have been called for routine questioning.
Ponzi scheme details:
The mastermind often paid the current investors with the money which the new investors brought in. As a result, the scam kept on continuing. The current compensation which he has offered is as per the initial amounts which the investors had invested. However, many of the investors are not happy with this offer. They want their Bitcoin investments as per the current prices. The current prices of Bitcoin are higher as compared to what they had invested. This is the reason why they are demanding the compensation as per the current prices.
Also, the complaints seem to be piling up. In each and every metropolis, complaints against this investment scheme have been piling up. This is putting pressure not just on the mastermind but also on the police in order to do something about the case and ensure that investors are able to get back their money at the earliest. It remains to be seen whether investors will be recouped or not.
