CBI Takes Custody of Darwin Labs CTO Ayush Varshney in GainBitcoin Cryptocurrency Fraud Case

India's Central Bureau of Investigation (CBI) has taken custody of Ayush Varshney, co-founder and Chief Technology Officer of Darwin Labs Private Limited, in connection with the GainBitcoin cryptocurrency fraud, one of the country's largest and most complex Ponzi schemes.

Varshney was intercepted by immigration authorities at Mumbai's Chhatrapati Shivaji Maharaj International Airport on March 9 while attempting to leave India. He was formally arrested the following day, after a Look Out Circular had been issued to prevent his departure from the country.

The arrest follows the Supreme Court's consolidation of multiple First Information Reports (FIRs) into a single investigation targeting the multi-layered scam, which allegedly defrauded thousands of investors across India.

According to CBI officials, Varshney played a critical role in designing the scheme's technical infrastructure. His responsibilities reportedly included the development of the MCAP token, ERC-20 smart contracts, investor wallets, payment gateways, the GainBitcoin website, and the Bitcoin mining platform GBMiners.com.

The GainBitcoin Scheme

Launched in 2015 by Amit Bhardwaj and Ajay Bhardwaj through Variabletech Pte. Ltd., a Singapore-registered entity, GainBitcoin promised investors fixed monthly returns of approximately 10% through "cloud mining" contracts. The operation utilized multi-level marketing mechanisms that encouraged participants to recruit new investors, creating a pyramid structure where deposits from later investors were used to fund payouts to earlier participants.

Authorities estimate total losses at approximately $790 million, impacting more than 100,000 investors across major Indian states. Investigators allege that Darwin Labs' infrastructure misrepresented mining activity, with no real allocation of mining power to investor accounts.

Coordinated raids conducted at over 60 locations in February 2025 led to the seizure of cryptocurrencies valued at approximately ₹23.94 crore ($2.6 million). The Enforcement Directorate is currently investigating money laundering aspects and tracing fund flows, while the CBI focuses on the core fraud and asset recovery efforts.