ED Charges Raj Kundra as Beneficial Owner in Rs 150 Crore Bitcoin Scam

The Enforcement Directorate (ED) has filed a chargesheet against businessman Raj Kundra in a bitcoin scam, alleging that he was the beneficial owner of 285 Bitcoins, rather than acting only as a mediator in the transactions.

According to PTI, Kundra is in possession of 285 Bitcoins, currently valued at over Rs 150 crore, which were received from the late crypto-scam mastermind Amit Bhardwaj. The chargesheet has been filed before a special Prevention of Money Laundering Act (PMLA) court, according to reports.

The ED said Kundra deliberately concealed crucial evidence, including Bitcoin wallet addresses, and failed to surrender the Bitcoins received from Bhardwaj. The agency further contended that he continued to retain and enjoy the proceeds of crime in the form of the digital assets. It was also reported that Kundra conducted a financial transaction with his actor wife, Shilpa Shetty, at far below market rates to disguise the origin of the funds obtained through criminal activities.

According to reports, the chargesheet detailed that Kundra attempted to frustrate proceedings under the PMLA by layering the proceeds of crime and presenting them as untainted. The case arises from FIRs lodged by Maharashtra and Delhi police against Variable Tech Private Limited and several individuals, including Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, and Mahender Bhardwaj.

The ED said the Bitcoins were initially intended to be used for mining operations, with investors promised substantial returns in crypto assets. However, the promoters allegedly cheated investors and concealed the ill-got Bitcoins in obscure digital wallets, according to reports. Kundra is said to have received 285 Bitcoins from Amit Bhardwaj, the mastermind of the Gain Bitcoin Ponzi scam, for setting up a mining farm in Ukraine. Since the project did not materialise, Kundra is still in possession of the Bitcoins, valued at more than Rs 150 crore, the agency added.

The PTI reported that Kundra claimed to have acted as a mediator in the transactions but did not provide any documentary evidence to support this. The ED maintained that an agreement titled “Term Sheet” was signed between Kundra and Mahendra Bhardwaj, showing that he was directly involved. The agency noted that Kundra’s ability to recall the exact number of Bitcoins received in five specific tranches over more than seven years reinforced that he was the beneficial owner, and not merely a mediator.

Despite several opportunities since 2018, Kundra has consistently failed to provide the wallet addresses where the 285 Bitcoins were transferred. He cited damage to his iPhone X as the reason for the missing information, which the ED viewed as a deliberate attempt to destroy evidence and conceal proceeds of crime, according to reports. Besides Kundra, businessman Rajesh Satija has also been named in the chargesheet.