The GainBitcoin Ponzi Scheme: Arrests at the Height of Popularity
Indian law enforcement agencies have arrested Ayush Varshney, who is suspected of involvement in the multi-year cryptocurrency pyramid scheme GainBitcoin. Varshney was arrested at the Mumbai airport.
According to the source, Varshney's company developed the technology used in the GainBitcoin scheme. It was launched in 2015 and by the time it was shut down, it had attracted hundreds of millions of dollars in investments from thousands of people around the world.
GainBitcoin was positioned as a cryptocurrency investment project that promised its investors an extremely high rate of return. However, according to experts, it was actually a classic financial pyramid scheme, in which payments to new investors were made from funds attracted from earlier participants.
The closure of the GainBitcoin cryptocurrency pyramid in 2018 caused widespread outrage among affected investors. A number of criminal cases have been opened in India, including against Ayush Varshney.
The arrest of the suspect at the Mumbai airport indicates that the Indian law enforcement authorities have finally begun active steps to investigate this high-profile case. Presumably, this is just the beginning, and we can expect many more arrests and court proceedings in the future.