Enforcement Directorate Charges Raj Kundra with Possessing 285 Bitcoins Worth Rs 150 Crore in Cryptocurrency Fraud Case

The Enforcement Directorate has recently submitted a chargesheet before a special PMLA court against businessman Raj Kundra in connection with a bitcoin case.

According to the ED, Kundra is not merely a 'mediator' as he claimed but actually a beneficial owner in the cryptocurrency transactions. The agency states that he possesses 285 Bitcoins, currently valued at approximately Rs 150.47 crore, which were received from Amit Bhardwaj, the late mastermind behind the crypto-scam.

The ED alleges that Kundra has deliberately hidden important evidence, including Bitcoin wallet addresses, and has failed to surrender the Bitcoins obtained from Bhardwaj. The probe agency maintains that Kundra continues to possess and benefit from these proceeds of crime.

Furthermore, the ED claims that Kundra conducted a "genuine transaction" with his wife, actress Shilpa Shetty, at a price "far below market rate" to disguise the origin of funds acquired through criminal activities. Through this layering of proceeds, the ED asserts that Kundra attempted to frustrate PMLA proceedings and present the assets as untainted.

This money-laundering investigation originates from FIRs filed by Maharashtra and Delhi police against Variable Tech Private Limited, the late Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, and Mahender Bhardwaj.

According to the ED, investors were promised significant returns in crypto assets through Bitcoin mining, but the promoters allegedly cheated them and concealed the illicitly gained Bitcoins in obscure online wallets.

The agency alleges that Kundra received 285 Bitcoins from Amit Bhardwaj, the "mastermind" and promoter of the Gain Bitcoin Ponzi scheme, for establishing a Bitcoin mining operation in Ukraine. Since this venture never materialized, Kundra allegedly still possesses these 285 Bitcoins, currently valued at over Rs 150 crore.

The chargesheet contradicts Kundra's assertion that he merely acted as a mediator in the transaction, noting that he failed to provide "any underlying documentary evidence to prove the same." Instead, the agreement titled "Term Sheet" was signed between Kundra and Mahendra Bhardwaj.

The ED argues that "the agreement was actually between Raj Kundra and Amit Bhardwaj (his father Mahender Bhardwaj) and the argument given by Kundra that he acted as a mere mediator is not tenable."

The chargesheet further notes that Kundra's ability to recall the exact number of Bitcoins received in five specific tranches over seven years after the transactions occurred "solidifies the fact that he was indeed the recipient of Bitcoins as a beneficial owner and not acted merely as a mediator."

Despite being given multiple opportunities since 2018, Kundra has consistently failed to provide the wallet addresses where the 285 Bitcoins were transferred. He attributed this to damage to his iPhone X shortly after his initial statement, which the ED interprets as a deliberate attempt to destroy evidence and conceal proceeds of crime.

In addition to Kundra, businessman Rajesh Satija is also named in the chargesheet filed by the Enforcement Directorate.