Bitcoin Scam Alert: ED Files Case Against Raj Kundra for ₹150 Cr

Raj Kundra Case Overview: Bitcoin Scam, ₹150 Cr, and India’s Loopholes

On September 27, the Enforcement Directorate (ED) filed a chargesheet against businessman Raj Kundra for his role in the ₹6,606 crore (about $800 million) GainBitcoin Ponzi scheme operated by late Amit Bhardwaj.

The ED claims that Kundra received 285 Bitcoins (₹150.47 crore / $18 million) from Bhardwaj for an unrealized Ukraine mining project. Rather than returning the Bitcoins, Kundra is accused of keeping them and then doing a below-market transaction with his wife, actress Shilpa Shetty, to conceal the source of funds. Bitinning broke the news on X (formerly Twitter).

Source: X

Chargesheet charges Kundra with suppressing evidence, refusing to produce the Bitcoins, and even destroying possible evidence by asserting his iPhone X—wallet holding information—broken. ED officials are convinced that Kundra was not acting as a middleman but as a direct beneficiary of proceeds of fraud. However, Shilpa Shetty refused claims that her husband transferred Rs 15 cr to her account.

A Trail of Crypto Frauds and Investor Losses

GainBitcoin is not a solitary Indian cryptocurrency scam. There have been a series of major hacks and scams in the last couple of years that shook the ecosystem:

• CoinDCX hack: Users made panic withdrawals after a hack drained funds.

• WazirX hack ($235 million / ₹1,942 crore): Thousands of users lost their wealth, and Indian exchange confidence was rattled.

All these instances point to the same weakness: Indian cryptocurrency remains neither fully legal nor regulated. As the millions of Indians continue to invest, scammers exploit loopholes knowing that punishments are delayed or diluted.

In a surprising turn of events, Union Minister Jayant Chaudhary and his wife recently made public ₹43 lakh ($51,500) worth of cryptocurrency assets—the first-ever official crypto ministerial revelation in India. 

Source: X

This shows that adoption is gaining momentum at all levels of society even while scams undermine trust.

India's Strongest Adoption, Flawed Rules: An Unhealthy Gap

India ranks #1 in Chainalysis Global Crypto Adoption Index 2025 with huge retail and institutional involvement. However, the absence of clear guidelines puts investors in jeopardy.

The government has started moving in the right direction: crypto exchanges from September 17, 2025, are now compulsorily required to undergo mandatory cybersecurity audits before they receive registration with the Financial Intelligence Unit. This has been aimed at avoiding cyber burglaries and consolidating regulation on Virtual Asset Service Providers (VASPs).

But experts believe these steps are not sufficient. Without a comprehensive crypto law, India is in danger of repeating the same fraud cycle. Better investor protection, clear rules, and transparent taxation models are an urgent necessity.

Conclusion

The Raj Kundra case is a surety for one thing: India's increasing adoption without regulation is a fire starter to every crypto scam. Be it celebrity-attached Ponzi schemes or hacks worth billions, ordinary investors are the ones who lose. Tighter, more defined laws are no longer a choice—they are India's sole way forward to becoming a digital world leader.

Disclaimer: For educational purposes only. Always do your own research before any crypto investment.