Headline: CBI arrests Darwin Labs CTO in probe of GainBitcoin Ponzi scheme
India’s Central Bureau of Investigation (CBI) has arrested Ayush Varshney, co‑founder and chief technology officer of Darwin Labs Private Limited, in connection with the sprawling GainBitcoin crypto fraud allegedly run by Variabletech Pte. Ltd. Authorities say the scheme operated like a Ponzi program, selling cryptocurrency “mining packages” with promises of unusually high returns and later misappropriating investor funds.
What investigators say happened
- The CBI alleges Variabletech ran GainBitcoin as a Ponzi‑style investment program that lured thousands of investors across multiple jurisdictions with outsized mining returns.
- Darwin Labs — and co‑founders Varshney, Sahil Baghla and Nikunj Jain — are accused of building key technical components for the operation: an ERC‑20 token called MCAP, the GBMiners.com Bitcoin mining platform, a bitcoin payment gateway, a crypto wallet named Coin Bank, and the GainBitcoin investor portal.
- Collected funds were reportedly diverted and misused, prompting criminal investigations under several sections of the Indian Penal Code (including criminal conspiracy, criminal breach of trust and cheating) and provisions of the Information Technology Act, 2000.
Timeline and arrest
- The investigation was consolidated after a December 2023 Supreme Court directive ordering that multiple GainBitcoin complaints be handed to the CBI.
- Varshney had been absconding; a Look Out Circular was issued against him.
- Immigration officials intercepted him at Mumbai airport on March 9 as he allegedly attempted to leave India. He was taken into custody by the CBI and formally arrested on March 10.
Why it matters
The GainBitcoin case is being treated as one of India’s largest crypto‑related fraud probes, involving thousands of investors and cross‑border elements. The arrest of a principal technical architect underscores regulatory and enforcement focus on the infrastructure and personnel behind alleged crypto scams, not just promoters.
The CBI continues to investigate. Further arrests or formal charges against other individuals involved have not been announced publicly at this time.
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