GainBitcoin Probe Takes Dramatic Turn as Auditor Arrested Over Rs 30 Crore Crypto Asset Diversion
The long-running GainBitcoin cryptocurrency fraud investigation has taken a startling turn with the arrest of a forensic audit firm official accused of siphoning off digital assets seized during the probe. Mumbai Police allege that the accused acted in collusion with certain law enforcement personnel to divert cryptocurrency worth nearly Rs 30 crore. The case, which dates back to 2018, centres on an alleged investment scam that promised unusually high returns through bitcoin-linked schemes. The development has raised serious questions about oversight, custodial safeguards, and integrity within complex financial crime investigations involving digital assets.
Arrest Sparks Fresh Controversy in GainBitcoin Case
Mumbai Police’s Economic Offences Wing has arrested Gaurav Harish Mehta, 31, an official associated with a forensic audit firm appointed to assist Pune Police and Cyber Police in the GainBitcoin fraud investigation. Authorities allege Mehta misappropriated cryptocurrency assets that had been seized as part of the ongoing probe.
Investigators are now pursuing other suspects, including additional audit firm officials and certain police personnel whose names have surfaced during inquiries spanning Mumbai and Pune.
Background of the Cryptocurrency Fraud
The GainBitcoin case was registered in 2018 at the Nigdi and Dattawadi police stations in Pune. The investigation invokes multiple provisions of the Indian Penal Code, the Maharashtra Protection of Interest of Depositors (MPID) Act, and the Information Technology Act.
According to investigators, the alleged scam involved enticing investors with promises of exceptionally high returns through cryptocurrency-based investment plans, a tactic that exploited both market enthusiasm and limited regulatory clarity at the time.
Allegations of Collusion and Asset Diversion
Police claim that the accused siphoned off seized digital assets valued at nearly Rs 30 crore. The alleged diversion underscores the complexities of handling cryptocurrencies during criminal investigations, where custody, access controls, and technical expertise play a critical role.
Officials say the inquiry is now focused on tracing asset movements and determining the extent of internal collusion.
Defense Challenges Arrest
Mehta’s legal counsel, Aftab Qureshi, has denied the allegations, arguing before the court that his client was falsely implicated. The defense contended that Mehta was summoned to assist investigators and was treated as a witness before being arrested without justification, calling him a scapegoat in a wider controversy.
Court Orders Police Custody
The 47th Metropolitan Magistrate Court remanded Mehta to police custody, allowing investigators additional time to question him and pursue leads related to missing digital assets.
Broader Implications for Crypto Crime Investigations
The arrest has highlighted vulnerabilities in the handling of digital evidence and seized cryptocurrencies. As financial crimes increasingly involve virtual assets, the case underscores the need for tighter protocols, independent oversight, and transparent audit mechanisms to preserve public trust in high-stakes economic investigations.
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