Mumbai: ED attaches properties of Raj Kundra and Shilpa Shetty in bitcoin fraud case

Vijay V Singh (THE TIMES OF INDIA; April 19, 2024)

Mumbai: Enforcement Directorate has provisionally attached the properties of businessman Ripu Sudan Kundra (Raj Kundra), including a flat in Juhu in the name of his actor wife Shilpa Shetty, collectively worth Rs 97.8 crore, in a money laundering case connected to a Pune bitcoin ponzi “scam”.

The agency is likely to summon Shetty for her statement, reports Vijay V Singh. ED issued a press release on Thursday stating that Kundra had received 285 bitcoins from Amit Bhardwaj, the mastermind and promoter of Gain bitcoin ponzi scam, to set up a bitcoin mining farm in Ukraine.
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Mumbai: ED, which has provisionally attached properties worth Rs 97.8 crore belonging to businessman Raj Kundra and his a ctor wife Shilpa Shetty in a Pune bitcoin scam involving Amit Bharadwaj and his brother Ajay, said, “The 285 bitcoins Kundra got were sourced from the proceeds of crime collected by Amit Bhardwaj from gullible investors. Since the deal didn’t materialize, Kundra is still in possession and enjoyment of 285 bitcoins, which are presently valued at more than Rs 150 crore.”

The attached properties include a bungalow in Pune and equity shares in the name of Kundra. ED sources said Kundra had used the proceeds of crime to create properties. The agency had recorded his statement in the case earlier, and he told them that he received payment from Bhardwaj for providing consultancy for the bitcoin business.

Pune-based Bhardwaj brothers promoted Variabletech Pte Ltd, a Singapore-based company, and controlled gainbitcoin.com after claiming that it had acquired cloud mining hash power (which refers to capability in machines used for crypto mining) from large vendors. They lured investors by promising good returns and through gainbitcoin.com collected bitcoins equivalent to Rs 6,600 crore from investors.

However, the duo cheated investors by concealing ill gotten bitcoins in obscure online wallets. The brothers failed to pay the promised returns, after which the investors filed police cases against them at various places a few years ago, based on which ED registered the money laundering case. Amit Bhardwaj died abroad in 2022, after which the investigators’ focus shifted to his brother Ajay.

Earlier, multiple search operations were carried out in this case. During one of the searches last year, ED found Ajay at his home in Delhi. The ED team was searching the premises in his presence when his wife, S impy, a llegedly came home with a group of lawyers and they engaged ED officials after accusing them of violating court orders related to the case. Ajay allegedly used the opportunity to flee their home along with his father, and they are still at large.

After the incident, the agency filed a separate p olice case against Simpy, along with others, for creating hurdles during the search and arrested her in the money laundering case it was investigating. ED said Simpy was actively involved in the scam. It a lso arrested her brother Nitin Gaur and one Nikhil Mahajan and charged them with money laundering.

Mahajan, a Delhi-based event management company owner, had helped Bhardwaj brothers organise two events in Dubai a few years ago. All three are currently in judicial custody. Earlier, ED had attached properties worth Rs 69 crore in the case.
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Samiullah Khan (MID-DAY; April 19, 2024)

The Enforcement Directorate (ED) has allegedly attached properties belonging to Raj Kundra and his wife, actress Shilpa Shetty, worth about Rs 97.79 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with a Bitcoin investment fraud case. According to ED sources, the attached properties include a residential flat in Juhu, currently registered under Shilpa’s name, a residential bungalow in Pune, and equity shares in Kundra’s name all worth about Rs 97.79 crore.

Kundra, who spent two months in jail in connection with a pornography case, was granted bail in September 2021. The latest action by the ED is part of a money laundering case filed against Kundra based on multiple FIRs registered by Maharashtra and Delhi Police against M/s Variable Tech Pvt Ltd, including Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simp Bhardwaj, Mahender Bhardwaj, and several multi-level marketing agents.

The FIRs allege that the accused collected significant funds in Bitcoins, approximately worth Rs 6,600 crore, from the public with false promises of a 10 per cent monthly return in Bitcoins.

According to ED sources, Kundra received 285 Bitcoin from Amit, the mastermind and promoter of the Gain Bitcoin Ponzi scam, for setting up a Bitcoin mining farm in Ukraine. These Bitcoins were sourced from proceeds of crime collected by Amit from unsuspecting investors.

Despite the deal falling through, Kundra did not return the 285 Bitcoins, presently valued at over Rs. 150 crores. Earlier search operations led to the arrest of three individuals—Simpy Bhardwaj, Nitin Gaur, and Nikhil Mahajan—who are currently in judicial custody. The main accused, Ajay and Mahendra, are still evading law enforcement. This marks the second attachment in the case, with earlier properties worth Rs. 69 crores being attached by the ED.