ED Raids Uncover Bitcoin Links in Maharashtra Polls Amid Crypto-Ponzi Scam Probe

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Key Developments

  • ED Raids in Chhattisgarh: The Enforcement Directorate (ED) raided the premises of Gaurav Mehta, an auditing company employee, in Raipur under the Prevention of Money Laundering Act (PMLA).
  • Bitcoin Funding Allegations: The raids follow allegations of Bitcoin transactions being used to influence the Maharashtra Assembly elections. BJP released purported voice notes allegedly linking NCP’s Supriya Sule and Congress’s Nana Patole to Bitcoin-based poll funding.
  • Denials from Politicians: Sule and Patole have denied these allegations, with Sule filing complaints with the Election Commission and the cybercrime department.

Background: The Bitcoin Ponzi Scam

The ED’s investigation into this case stems from FIRs alleging a massive Rs 6,600 crore crypto-Ponzi scheme involving:

  • Variable Tech Pvt Ltd: Promoters like the late Amit Bhardwaj allegedly duped investors with promises of a 10% monthly return in Bitcoin.
  • Prominent Figures Implicated: Shilpa Shetty’s husband, Raj Kundra, allegedly received 285 Bitcoins from Amit Bhardwaj for setting up a mining farm in Ukraine.

BJP’s Accusations and Political Implications

BJP spokesperson Sudhanshu Trivedi alleged that the voice notes and Signal chats purportedly showed the involvement of Sule and Patole in using Bitcoin for election funding. Trivedi claimed the opposition coalition, MVA, was resorting to desperate measures in the face of defeat.

  • Congress’s Response: Patole dismissed the voice clips as fake, asserting that even PM Narendra Modi would recognize his voice.
  • NCP’s Response: Sule maintained her innocence, asserting no connection to Gaurav Mehta.

Ongoing Legal and Financial Investigations

  • ED’s Actions:
    • Attached assets worth Rs 98 crore in April.
    • Two chargesheets filed since 2019, with properties worth Rs 69 crore already attached.
    • Promoters like Ajay and Mahendra Bhardwaj remain absconding, while three arrests have been made.
  • Crypto Crime Mechanism: The scheme involved concealing proceeds of crime in obscure wallets while duping investors under the guise of Bitcoin mining ventures.

Conclusion: A Complex Nexus

The ED’s investigation sheds light on the murky intersections of cryptocurrency scams, money laundering, and political funding. As allegations fly and investigations deepen, the unfolding case highlights the challenges of regulating emerging financial technologies and their misuse.
Will these revelations have a significant impact on the Maharashtra elections or broader crypto regulations in India?

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