The Supreme Court on Monday remarked that the plea by Ajay Bhardwaj, an accused in the GainBitcoin scam, seeking quashing of the case against him, should be dismissed for non-compliance with the earlier order of the Apex Court.
The Division Bench of Justices D.Y. Chandrachud and Surya Kant took exception to Ajay Bhardwaj failing to disclose the username and password of his cryptowallet to the Enforcement Directorate (ED).
The Apex Court had on March 28 asked Bhardwaj to disclose the username and password of his cryptowallet to the ED.
During the hearing, the Supreme Court said,
“This is not some Tis Hazari Court where accused can play like this and Bhardwaj should comply with the order then only he can come to the Court.”
The Court adjourned the hearing while directing Bhardwaj to submit details to the ED tomorrow.
The Court was hearing a petition filed by Bhardwaj, who along with alleged mastermind and brother Amit Bhardwaj, are accused of running a multi-level marketing scheme promising huge returns to investors.
Additional Solicitor General Aishwarya Bhati, who appeared for the ED, said Amit Bharadwaj has passed away and the case relating to him can be disposed of.
On February 25, the Supreme Court directed the Centre to file the latest status report in the Bitcoin Ponzi scam of 80,000 bitcoins worth Rs 2000 crore against the Bhardwaj brothers. The court has also asked the Central government to make its stand clear on Bitcoins and whether it is illegal or not.
Last year, a number of investors had filed complaints against Amit Bhardwaj. A non-bailable warrant had been issued to arrest the accused. The complaints were registered under Sections 406, 420 and 34 of the Indian Penal Code. They had also been charged under the Information Technology Section 66 D and the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Sections 3 and 4.
Cryptocurrencies continue to fascinate Indian investors despite major market fluctuations. The number of crypto users keeps on increasing and so do the crimes in the sector. In 2021, Indian users visited the crypto scam websites over 9 million times.
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The most highlighted case was this Rs 2000 crore GainBitcoin Ponzi Scheme scam. In 2018, several complaints were lodged against Amit Bhardwaj, a businessman who cheated over 8000 people. He lured the investors to give him bitcoins in exchange for higher returns. He even introduced a contract of 18 months offering a 10% return. The accused was arrested in March 2018. The Apex Court granted bail to the accused on medical grounds in 2019.
Multi-Level Marketing refers to a strategy used by some direct sales companies to sell products and services. This scheme encourages existing members to promote and sell their offerings to other individuals and bring new recruits into the business.
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