Amit Bhardwaj, Gainbitcoin and GBminers founder, is now offering to pay back all initial investments in Indian Rupees. Bhardwaj received accusations of conning thousands of investors, promising them unrealistic returns through investing in Bitcoin. There were reports that many people filed police complaints in Mumbai, Dehli, Kolkata, Nanded, and Pune.

Investment estimations since 2015 say about $146M went into Bhardwaj’s Gainbitcoin. Indian police investigations into these transactions are currently questing the country’s largest exchange, Zebpay. An official from the Pune Cyber Crime Cell explained that, “Zebpay is the platform through which investment and sale of bitcoins were done in this case, which is why they were called for an enquiry.”

Why The Hold Up?

Herant Takle, a member of the Nationalist Congress Party, questioned the parliament’s delay in recovering the Bitcoin. He also questioned the delay by police in arresting the other people with involvement in the scam. Takle wants clear information on how the victims will receive compensation. He also wants to know how the public will receive word of that method.

However, Deepak Kesarkar answered Takle’s questions. He explaining to Talke the difficulty in recovering funds invested in Bitcoin. Kesarkar, a member of the Maharashtra legislative assembly explains, “Some of this amount is recovered by the police department through the e-wallets of these companies. The value of these digital currencies in the wallet will be recovered but it is difficult to recover the investment made in foreign companies.”

There are many cases of Bitcoin scam in India. This is leading the State of Maharashtra to form a special unit to run investigations. India’s thoughts on cryptocurrencies are confusing at the moment. This is apparent since the Reserve Bank of India bans the trade of digital currencies within the country. However, the bank’s decision is not sitting well in the country where many people already have investments in the sector.