India's Central Bureau of Investigation (CBI) has arrested Ayush Varshney, co-founder and chief technology officer of Darwin Labs Private Limited, in connection with the GainBitcoin cryptocurrency fraud investigation. Varshney was detained at Mumbai airport while attempting to leave the country.
The CBI states Darwin Labs built the technological infrastructure for the alleged scheme, including the GainBitcoin investor platform, payment systems, and wallets.
Investigators allege the GainBitcoin scheme promised investors monthly returns of 10% in Bitcoin. The CBI says funds collected were misappropriated. Darwin Labs and its co-founders are accused of designing a cryptocurrency token, MCAP, and developing key platform components, including a mining pool and Bitcoin wallet.
The GainBitcoin scheme, which emerged in the mid-2010s, is believed to have involved 8,000 investors with estimated losses around $790 million. The operation was reportedly masterminded by Amit Bhardwaj, who died in 2022.