India arrests Darwin Labs co-founder in GainBitcoin scam probe
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 India
Investigators 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.
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).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Q3 results exceed expectations + full-year guidance raised! Grab (GRAB.US) receives bullish rating from Citigroup after earnings: Stock price can still rise over 92%
Citi has given Grab a "Buy" rating with a target price of $5.50. This target represents a potential upside of over 92% compared to Monday's closing price of $2.86.
From "Powering AI" to "Powering Everything"! Morgan Stanley: The electricity "super cycle" is underestimated by the market
Morgan Stanley believes that the drivers of electricity demand have expanded from AI to three major forces: industrial migration and air conditioning refrigeration. Global electricity consumption is projected to reach 36 trillion kWh by 2030, with an annual growth rate of 4.2%. Asia will absorb 64% of the newly generated electricity demand. Fossil fuels have unexpectedly regained market share and are expected to still account for about 50% of the global power structure in 2030. Pricing power is shifting from equipment manufacturers to power generation operators, with wholesale electricity prices in major markets expected to rise by about 20% year-over-year in 2026. These trends will create $500 billion in wealth, driving related companies’ earnings per share forecasts up by 14% by 2028, while the market has yet to fully price in these changes.
Crypto prices
More
