What to Know
- CBI arrests Darwin Labs co-founder Ayush Varshney in Gain Bitcoin scam.
- ₹20,000 crore ($2.17B) crypto fraud promised 10% monthly Bitcoin returns.
- Darwin Labs allegedly built the tech infrastructure, including the MCAP token.
India’s Central Bureau of Investigation has arrested Darwin Labs co-founder Ayush Varshney in connection with the massive Gain Bitcoin scam, one of the largest cryptocurrency fraud cases in the country. The scam is estimated to be worth around ₹20,000 crore (about $2.17 billion) and has affected thousands of investors across India.
Varshney was detained at Chhatrapati Shivaji Maharaj International Airport in Mumbai while allegedly attempting to leave the country. According to officials, the agency had already issued a Look Out Circular against him, which triggered an alert when he tried to travel abroad.
“The arrest was made based on a Look Out Circular. He was detained at the airport,” the CBI said in a statement. Authorities confirmed that Varshney was first detained on March 9, 2026, and was formally arrested a day later on March 10.
Role of Darwin Labs
According to investigators, Darwin Labs played a key role in building the digital systems that powered the Gain Bitcoin scheme.
The CBI said the company designed and developed the technological infrastructure used by the operation. This included creating the MCAP cryptocurrency token and the ERC-20 smart contracts associated with it. Officials say Darwin Labs and its founders Ayush Varshney, Sahil Baghla, and Nikunj Jain helped build several important platforms connected to the scheme.
These reportedly included:
- The GainBitcoin website, which investors used to interact with the platform
- A Bitcoin mining pool platform called GBMiners.com
- A Bitcoin payment gateway
- The Coin Bank Bitcoin wallet
According to investigators, these tools formed the operational backbone of the alleged fraudulent enterprise. “The company designed and deployed the technological architecture used by GainBitcoin,” a CBI spokesperson said.
The Gain Bitcoin Scheme
The Gain Bitcoin operation was launched in 2015 and was allegedly masterminded by Amit Bhardwaj, who has since died, along with his brother Ajay Bhardwaj and a network of promoters. The scheme attracted investors by promising extremely high returns. People were told they could earn 10% monthly returns in Bitcoin for 18 months by participating in so-called cloud mining contracts.
“Investors were encouraged to purchase Bitcoin from exchanges and invest them with GainBitcoin through cloud mining contracts,” a CBI officer said. Initially, some investors received payouts in Bitcoin, which made the scheme appear legitimate and helped attract more participants. However, authorities say the operation followed a MLM structure, where investors were encouraged to recruit others in order to earn rewards.
Collapse of the Scheme
By 2017, the flow of new investors began to slow down. As the scheme started running out of funds, payouts reportedly began to decline. To hide the losses, GainBitcoin allegedly stopped paying investors in Bitcoin and instead switched to a cryptocurrency called MCAP, which was created by the platform.
Authorities say the token had far less value than Bitcoin, leaving many investors with heavy losses. “In an attempt to cover up the losses, the platform switched payouts to its own cryptocurrency called MCAP,” investigators said.
A Nationwide Investigation
The size and reach of the scam led to multiple police cases across India, including in states such as Delhi, Maharashtra, Jammu and Kashmir, and West Bengal. Because of the scale of the operation and its international connections, the Supreme Court handed over the investigation to the CBI.
Officials estimate the scam involved around 29,000 Bitcoins, making it one of the largest cryptocurrency fraud cases in India. In February last year, the CBI conducted raids at over 60 locations across several cities including Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur, and Bengaluru as part of the investigation. The agency said it is continuing to track the flow of funds and identify all individuals involved.
The Enforcement Directorate is also investigating the money laundering aspects of the case. Authorities have seized several assets linked to the alleged fraud, including properties in India and abroad. Officials said the ED has also attached six office properties in Dubai connected to the case.
What’s Next?
The CBI has registered cases under several sections of the Indian Penal Code, including criminal conspiracy, breach of trust, and cheating, along with provisions of the Information Technology Act.
Officials say the investigation is ongoing and more arrests may follow as authorities continue to trace the money and identify those involved.
