Bitcoin-based Ponzi scheme case: Court rejects event organiser Nikhil Mahajan’s bail plea

Delhi event firm director's bail plea rejected in ₹6,600 crore Bitcoin Ponzi scheme case; court says he aided in money laundering.

MUMBAI: A special court designated under Prevention of Money Laundering Act (PMLA) rejected the bail plea of Delhi-based event management firm director Nikhil Mahajan, arrested by the Enforcement Directorate (ED) in connection with the ₹6,600 crore Bitcoin based Ponzi scheme.

HT Image

Mahajan had sought bail, claiming to be innocent and stating that he had only provided event management services to Amit Bharadwaj, owner of the website gainbitcoin.com through which the Ponzi scheme was implemented by luring investors in the name of earning high returns from “bitcoin mining.”

He had claimed that though there are at least 33 first information reports registered against M/s Variabletech Pvt Ltd, gainbitcoin.com, its owner Amit Bharadwaj and others, he was not named in any of the FIRs and he merely provided his services to the accused persons for stipulated fees.

Mahajan had allegedly organised promotional events for gainbitcoin.com, owned by Bharadwaj employing celebrities and film personalities in Bubai and Macau and only because Bharadwaj took his name, he was implicated by the ED in its money laundering case.

Special judge MG Deshpande, however, refused to accept the contentions. The court said Mahajan aided and assisted gainbitcoin.com and Bharadwaj - the prime accused and his associates in concealing the proceeds of crime and also received part of it.

The court said Mahajan did not reveal his agreements with either the celebrities or with the accused firms and accepted fees from the accused in Bitcoins – he was allegedly paid 40 Bitcoins for his services of organising promotional events for the accused to promote their Ponzi scheme at foreign destinations, and therefore rejected his bail plea.

The ED has claimed that the accused persons have collected around ₹6,606 crores from gullible investors and duped them.