Bitcoins
- Indian authorities arrested Darwin Labs co-founder Ayush Varshney at Mumbai airport for his alleged role in the GainBitcoin fraud case
- Investigators claimed Darwin Labs developed the essential technology, wallets, and tokens used to operate the scheme and manage investor funds
- The fraudulent operation allegedly diverted approximately US$790 million from 8,000 investors through promised Bitcoin returns that shifted to devalued in-house tokens
Indian authorities have arrested Ayush Varshney, co-founder and chief technology officer of Darwin Labs, in the GainBitcoin fraud case, one of the country’s biggest crypto investment investigations.
The Central Bureau of Investigation said Varshney was stopped at Mumbai airport on Monday while trying to leave India after a Look Out Circular was issued against him. He was formally arrested the next day and taken into CBI custody.
Investigators say Darwin Labs built much of the technology used by the alleged scheme. That included the GainBitcoin investor website, wallet and payment systems, and other backend tools used to run the operation.
The agency also named Darwin Labs co-founders Sahil Baghla and Nikunj Jain. According to the CBI, the company was involved in creating the MCAP token and its ERC-20 smart contract, along with the GBMiners.com mining pool, a Bitcoin payment gateway, and the Coin Bank wallet.
Read more: Crypto Hacks Drop in February as Phishing and Wallet Scams Surge
Case centers on fixed Bitcoin return claims
GainBitcoin started in the mid-2010s as a cloud-mining platform. Investigators say it promised investors monthly returns of about 10% in Bitcoin for up to 18 months and was marketed through Variabletech Pte. Ltd.
The CBI alleges the money raised was diverted and that the model depended on constant recruitment of new investors. When inflows weakened, payouts were allegedly shifted from Bitcoin to MCAP, an in-house token that authorities say was worth much less. The case involves about 8,000 investors, with estimated losses of 6,606 crore rupees, or roughly US$790 million (AU$1 billion).
The arrest of Varshney is the latest move in the long-running probe. On Feb. 26, 2025, investigators searched more than 60 locations linked to the case.
The alleged mastermind, Amit Bhardwaj, was a well-known early Bitcoin promoter in India. He died in 2022 while out on bail.
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