The GainBitcoin cryptocurrency scam Supreme Court SIT probe has reached a significant stage, with the Supreme Court issuing notice to the Central Government on a public interest petition seeking a Special Investigation Team (SIT). The petition seeks a unified investigation into all pending FIRs related to the alleged multi-crore cryptocurrency fraud. Petitioners claim the scam involved the diversion of over two lakh Bitcoins from more than one lakh investors across India.
Supreme Court Seeks Centre’s Response
On July 14, the Supreme Court asked the Central Government to respond to the petition. The plea seeks the creation of an SIT to investigate all pending GainBitcoin-related cases under one authority.
A three-judge Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi, and Justice V. Mohana heard the matter. The case is titled Gautam Mahendrakumar Chordia vs Union of India. The Bench is examining whether multiple FIRs filed across different states should be consolidated.
Bitcoin Investors Protection Society Raises Concerns
The petition was filed by seven founding members of the Bitcoin Investors Protection Society (BIPS). Gautam Mahendrakumar Chordia leads the group. They represent 273 identified victims.
The petition relies on Enforcement Directorate (ED) records. According to the records, the alleged scam affected more than one lakh investors nationwide.
The petition claims that the operators promised fixed monthly returns through cloud-mining investments. Instead, they allegedly diverted investors’ cryptocurrency into proxy accounts, foreign bank accounts, and digital asset exchanges.
Petition Highlights Jurisdictional Vacuum
Advocate K. Krishna Mohan, appearing for the petitioners, submitted that more than 35 FIRs have been registered over the past decade. However, investigators have recovered only a small portion of the alleged assets. Several key accused also remain absconding.
The petition refers to the Supreme Court’s December 13, 2023 order transferring a group of GainBitcoin cases to the CBI. The agency was authorised to merge related FIRs.
However, the petitioners argue that the CBI merged only ten FIRs. It declined to investigate cases outside the scope of that order. According to the plea, this created a jurisdictional vacuum. Many state police agencies also slowed or stopped their investigations, believing the CBI had assumed complete responsibility.
Proposal for an Expert SIT
To address these issues, the petitioners proposed an independent SIT headed by a retired High Court judge.
The proposed team would include senior officers from the CBI and the ED. It would also include a representative from the Ministry of Electronics and Information Technology (MeitY) and blockchain forensic experts.
The proposed SIT would investigate every FIR linked to GainBitcoin, Variable Tech, and GB Miners. It would also trace, freeze, and recover diverted cryptocurrency assets. Additionally, it would identify shell companies and proxy entities. The SIT would submit regular status reports to the Supreme Court.
Demand for Arrests and Asset Recovery
The petition also seeks the immediate arrest and custodial interrogation of Ajay Bhardwaj, Vivek Bhardwaj, and Mahender Bhardwaj.
It further requests judicial directions to recover the alleged proceeds of crime. According to the petition, authorities should recover assets worth approximately ₹7,404 crore linked to Ajay Bhardwaj and ₹1,969 crore allegedly connected to Vivek Bhardwaj.
Significance of the Case
The GainBitcoin cryptocurrency scam Supreme Court SIT probe could shape the future of cryptocurrency fraud investigations in India. If the Court approves the proposed SIT, it could streamline investigations, improve coordination among agencies, and strengthen efforts to trace and recover digital assets spread across multiple jurisdictions.
