The Enforcement Directorate (ED) lodged a Supplementary Prosecution Complaint (PC) under the Prevention of Money Laundering Act, 2002 on February 14, 2024, against accused Simpy Bhardwaj, also known as Simpy Gaur, Nitin Gaur, Nikhil Mahajan, and Sandeep Kumar. The Hon’ble Special Court (PMLA) in Mumbai acknowledged the complaint on February 23, 2024.
A special PMLA court in Mumbai initiated proceedings against Simpy Bhardwaj, Ajay Bhardwaj's wife, Delhi businessman Nikhil Mahajan, and two others in connection with a bitcoin-based ponzi scam. Allegedly, the gang amassed 80,000 bitcoins and diverted funds worth Rs 6,606 crore ($915 million) through nine overseas firms to purchase properties abroad.
The FIR indicates that the late Amit Bhardwaj, director of M/s. Variabletch Pvt. Ltd and founder of gainbitcoin.com, conspired with associates to develop computer software for mining cryptocurrency "Bitcoin."
ED launched an investigation into the ponzi scheme in 2018, based on cases registered by Maharashtra and Delhi police against Variable Tech, late Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, Mahender Bhardwaj, and other multi-level marketing agents.