Indian enforcement agencies have stepped up their investigation into Gaurav Mehta, an employee at an audit firm accused of involvement in a high-profile Bitcoin scam. The Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) carried out raids and issued summons as part of their ongoing probe into alleged links between cryptocurrency transactions and political figures.
The action came after the Bharatiya Janata Party (BJP) alleged, through voice notes released on Tuesday, that Nationalist Congress Party (Socialist) leader Supriya Sule and Congress leader Nana Patole were attempting to use cryptocurrency to influence the upcoming Maharashtra Assembly elections.
Raids and Summons
The ED conducted searches at Mehta’s residence in Raipur, questioning him and seizing computers and other digital devices. Meanwhile, the CBI issued a summons demanding Mehta’s immediate appearance before investigators.
According to ED officials, their money laundering probe into the alleged cryptocurrency scam has widened, with investigators scrutinizing links between Mehta and politically exposed persons, including bureaucrats and politicians.
Crypto-Ponzi Allegations
Central to the case is the ED’s claim that bitcoins were solicited from investors under the guise of mining operations that promised lucrative returns. Instead, promoters allegedly defrauded investors and concealed the proceeds in obscure online wallets.
The ED’s investigation into the scam has previously implicated notable figures, including Bollywood actor Shilpa Shetty and her husband, businessman Raj Kundra. In April, the agency attached assets worth ₹98 crore belonging to the couple, who subsequently secured relief from the Bombay High Court.
The ED has alleged that Kundra received 285 bitcoins from Amit Bhardwaj, the accused mastermind of the Gain Bitcoin Ponzi scheme, as part of a deal to establish a Bitcoin mining farm in Ukraine.
Political Implications
The controversy has taken a political turn following the BJP’s accusations involving senior political leaders. The allegations have sparked a heated debate, with opposition parties denying the claims and calling for transparency in the investigation.
The ED and CBI continue to expand their inquiry into the case, aiming to uncover the extent of financial irregularities and political connections.
This scandal marks another chapter in India’s complex relationship with cryptocurrency, highlighting the challenges regulators face in addressing fraud and ensuring accountability in the fast-evolving digital asset space.
