Who Was Arrested in the GainBitcoin Investigation?
India’s Central Bureau of Investigation (CBI) has arrested Ayush Varshney, co-founder and chief technology officer of Darwin Labs Private Limited, as part of its investigation into the GainBitcoin cryptocurrency investment scheme. Authorities detained Varshney at Mumbai airport on Monday while he was attempting to leave the country.
According to a press release issued Wednesday through the agency’s official account on X, a Look Out Circular had been issued against Varshney before his attempted departure. He was formally taken into custody and transferred to the CBI on Tuesday.
Investigators said Darwin Labs helped build the technical infrastructure used by the alleged scheme, including the GainBitcoin investor platform and related tools used to manage payments and cryptocurrency wallets.
The arrest adds a new development to one of India’s largest alleged cryptocurrency fraud investigations, a case that authorities say has affected thousands of investors across the country.
Investor Takeaway
What Role Did Darwin Labs Play?
According to the CBI, Darwin Labs played a central role in developing the technology used by the alleged operation. The company and its co-founders, including Varshney, Sahil Baghla and Nikunj Jain, were linked to the design and deployment of the MCAP cryptocurrency token along with its associated ERC-20 smart contract.
Authorities said the company also built several components connected to the GainBitcoin ecosystem. These included the GBMiners.com mining pool, a Bitcoin payment gateway, the Coin Bank Bitcoin wallet, and the GainBitcoin website used by investors to track their accounts.
The CBI said the infrastructure developed by the firm enabled the platform to manage deposits and transactions tied to the alleged scheme. Investigators claim these tools were part of the operational backbone supporting the investment program.
How the GainBitcoin Scheme Operated
GainBitcoin emerged in the mid-2010s as a cloud-mining investment platform that encouraged users to purchase Bitcoin and deposit it with the service in exchange for fixed returns. According to investigators, the program promoted monthly returns of around 10% in Bitcoin for a period of up to 18 months.
The scheme was promoted through Variabletech Pte. Ltd., and authorities say funds collected from participants were later misappropriated. The CBI stated that the platform eventually adopted a multi-level marketing structure that tied payouts to recruiting additional investors.
As deposits slowed, investigators say the platform began distributing returns using its internally issued MCAP token rather than Bitcoin. Authorities claim the token carried a far lower value than the promised returns, leaving investors with assets worth far less than expected.
Investor Takeaway
A Decade-Old Crypto Case in India
Authorities say the alleged scheme involved roughly 8,000 investors and losses estimated at around 6,606 crore Indian rupees, or roughly $790 million. The case has unfolded over several years as investigators track the network of companies and individuals tied to the operation.
The project was allegedly organized by Amit Bhardwaj, an early promoter of Bitcoin in India who died in 2022 while out on bail. Investigators have continued pursuing other individuals connected to the platform since his death.
In February 2025, authorities conducted searches at more than 60 locations as part of the investigation. The probe continues as officials attempt to trace funds and determine the full scope of the alleged fraud.
