Raj Kundra, the husband of popular Bollywood actress Shilpa Shetty, has found himself at the centre of a massive money laundering investigation conducted by India's Enforcement Directorate. The probe has uncovered a staggering ₹6,600 crore Bitcoin scam, with Kundra's alleged involvement casting a shadow over the couple's public image.
What Is Bitcoin Ponzi Scheme?
According to NDTV, the case revolves around a Ponzi scheme called 'Gain Bitcoin,' which was launched in 2017. The masterminds behind this scheme approached investors with the false promise of a 10% monthly return, payable in the form of Bitcoin. In a short span, they managed to amass a colossal ₹6,600 crore from unsuspecting victims.
The main accused, Ajay Bhardwaj and Mahendra Bhardwaj, claimed that they would use the funds to mine Bitcoins, which would supposedly generate instant and substantial rewards. However, the reality was far from their claims, as the first few months of profits were paid to the initial investors using the capital from the newer ones, a classic Ponzi scheme tactic.
Don't Miss:'Women Should Be Independent But To An Extent': Here's What Nora Fatehi Gets Wrong About Feminism
Raj Kundra's Connection to the Scam
The Enforcement Directorate's investigation has revealed that Raj Kundra, who is not the prime accused in the case, allegedly received 285 Bitcoins from Amit Bhardwaj, the mastermind and promoter of the 'Gain Bitcoin' Ponzi scheme. As an ED official told news agency IANS, "Since the deal didn't materialise, Raj Kundra is still in possession and enjoyment of 285 Bitcoins which are presently valued at more than ₹150 crore."
What is a Ponzi scheme?
For the uninitiated, a Ponzi scheme is a type of investment scam where returns are paid to earlier investors using the capital provided by newer investors, rather than from legitimate profits earned by the operation of a business. The scheme leads investors to believe that profits are coming from legitimate business activities. However, in reality, they are simply being paid out of the principal investments of newer investors. As the scheme requires a constant influx of new investors to sustain itself, it eventually collapses when it becomes impossible to recruit enough new investors to pay returns to earlier ones. Named after Charles Ponzi, who became infamous for using such a scheme in the early 20th century, Ponzi schemes are illegal in most jurisdictions and can result in severe penalties for those who orchestrate them.
Shilpa Shetty and Raj Kundra Maintain Their Innocence
In response to the allegations, Raj Kundra and Shilpa Shetty have denied any involvement in the case and expressed confidence in being cleared after the investigation. "On the face of it, there is no prima facie case made out against my clients Mr Raj Kundra and Mrs Shilpa Shetty Kundra. We have complete faith in the Honourable Judiciary," the couple's lawyer, Prashant Patil, told NDTV.
The Intricate Web of the Bitcoin Scam
VIDEO | The Enforcement Directorate attaches property of Actor Shilpa Shetty's husband, Raj Kundra in a money laundering case. Visuals from outside Shilpa Shetty Kundra's residence in Mumbai. pic.twitter.com/thVmhSQP0s
— Press Trust of India (@PTI_News) April 18, 2024
The Enforcement Directorate's probe has seized properties worth ₹97.79 crore, including a Mumbai flat registered in Shilpa Shetty's name. As the investigation unfolds, the case continues to captivate the public's attention, raising questions about the couple's potential role and the broader implications of the ₹6,600 crore Bitcoin scam that has rocked the nation.
Image Courtesy: Instagram
For more such stories, stay tuned to HerZindagi
Take charge of your wellness journey—download the HerZindagi app for daily updates on fitness, beauty, and a healthy lifestyle!
Comments
All Comments (0)
Join the conversation