Raj Kundra Accused of Holding 285 Bitcoins from Crypto Scam

Businessman Raj Kundra charged with holding $31M in Bitcoins linked to late crypto scammer Amit Bhardwaj, says Enforcement Directorate.

India’s Enforcement Directorate (ED) has filed a chargesheet against businessman Raj Kundra, accusing him of holding 285 Bitcoins worth ₹150 crore ($31 million). The digital assets were allegedly received from GainBitcoin founder Amit Bhardwaj who masterminded one of India’s largest Ponzi schemes in the crypto space. Authorities say Kundra was hiding vital evidence and not surrendering the Bitcoins despite repeated notices.

ED Alleges Concealment and Money Laundering in Bitcoin Holdings

According to the chargesheet filed in a special court under the Prevention of Money Laundering Act (PMLA), the Bitcoins were given to Kundra to set up a mining operation in Ukraine. The deal, however, never materialized and investigators allege that he kept the cryptocurrency for his own benefit. The ED alleges that Kundra hid wallet addresses. Moreover, he made transactions with his wife, actor Shilpa Shetty. As a result, he obscured the true source of the money.

Related Reading: Massive Crypto Scam Triggers Rs 42.8 Crore Asset Freeze in India | Live Bitcoin News

The Raj Kundra Bitcoin case is directly linked to the GainBitcoin Ponzi network which swindled over 8000 investors. Between 2015 and 2018 victims were promised lucrative returns, but over 80,000 Bitcoins were siphoned off. Bhardwaj, who died in 2019, left behind a complicated web of fraudulent transactions that enforcement agencies are still untangling. Kundra, according to investigators, was not a between man but a beneficiary in the first place.

Raj Kundra Crypto Scam Seen as Warning for India’s Crypto Market

The ED’s findings have heightened concerns about the effect of cases of high-profile fraud on investor sentiment. Analysts say Raj Kundra’s Bitcoin case highlights systemic flaws in tracking big crypto transactions in India. With the alleged hiding of Bitcoins valued at around₹ 150 crore, there have been renewed demands for better compliance and disclosure standards.

Community voices hit the nail on asset recover. Since the Bitcoins are kept in undisclosed wallets, there is a considerable delay in liquidation to compensate defrauded investors. This problem reflects wider problems regulators can face when assets from crypto scams are still frozen away in private holdings. Without clear recovery mechanisms, victims can go years without compensation.

Legal experts warn that high-value scams that remain inadequately resolved are undermining confidence in digital assets. “When enforcement agencies fail to recover proceeds of crime on a timely basis, it acts as a disincentive to a wider use,” noted one financial crime analyst. They say the Raj Kundra Bitcoin case shows how fraudsters exploit loopholes to keep control of illicit wealth.

Industry observers believe that the speedy resolution of such cases is critical to stabilizing market sentiment. If assets are seized and liquidated, victims may be able to recover some of their losses, which will help to rebuild trust in the sector. However, delays run the risk of adding to skepticism around cryptocurrencies, at least among first-time investors.

For now, the Raj Kundra Bitcoin case is a test of India’s enforcement framework. Its outcome could be the difference between regulators being able to increase asset recovery in crypto scams or struggling with long-winding erosion of investor confidence in digital finance.