Indian authorities have arrested Bharadwaj brothers — the creators of GainBitcoin platform based on a Ponzi scheme. About 8,000 investors out of $300 million were suffered.
Indian authorities have arrested Bharadwaj brothers — the creators of GainBitcoin crypto-pyramid. This project was opened in 2013 as a cloud-based platform for trading and mining bitcoins. About 8,000 investors who invested $300 million were suffered. Most of them were local residents who fell for the promise of 10% monthly charge.
The pyramid was built on multi-level network marketing principle, based on a Ponzi scheme.
In January after crash of cryptocurrency market, the payments to investors were stopped. At that time GainBitcoin founders withdrew all the money and disappeared in an unknown direction.
The police has arrested the Bharadwaj brothers at Pune airport. But the police stated there were more people involved in the pyramid.
Rashmi Shukla, Pune police commissioner, said:
"There are a few more people involved in the case who are on the run. We have issued a look out circular and have deployed three teams to trace them."
Investigation may reach the international level, as a case of money laundering, and the money was obtained by criminal means.
By the way, Bharadwaj brothers have written some books on blockchain and cryptocurrency: "Cryptocurrency For Beginners", "Cryptocurrency Trading" and "Cryptocurrency Mining."
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