India’s CBI arrests Darwin Labs CTO in probe of alleged GainBitcoin Ponzi
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 high-profile GainBitcoin fraud probe. Authorities say the case centers on an alleged Ponzi-style crypto investment scheme run by Variabletech Pte. Ltd. that promised outsized returns through cryptocurrency “mining” packages and later misappropriated investor funds.
What investigators allege
- The CBI’s case alleges that funds collected from investors in the GainBitcoin program were diverted and misused. The agency is probing the matter under multiple sections of the Indian Penal Code — including criminal conspiracy, criminal breach of trust and cheating — as well as provisions of the Information Technology Act, 2000.
- Darwin Labs and its co-founders, including Varshney, Sahil Baghla and Nikunj Jain, are accused of building key technical components used to operate the scheme. Investigators say the company helped design and deploy the MCAP token and its ERC-20 smart contract (the standard for tokens on the Ethereum network), and developed infrastructure including the GBMiners.com Bitcoin mining platform, a bitcoin payment gateway, a crypto wallet called Coin Bank, and the GainBitcoin investor portal.
Enforcement timeline
- The investigation was centralized after a December 2023 Supreme Court directive ordering that multiple complaints related to GainBitcoin be consolidated and investigated by the CBI.
- Varshney had reportedly been absconding during the probe, prompting a Look Out Circular. Immigration officials intercepted him at Mumbai airport on March 9 as he allegedly tried to leave the country; the CBI took him into custody and formally arrested him on March 10.
Scope and significance
- The GainBitcoin affair is being treated as one of India’s largest crypto-related fraud investigations, reportedly involving thousands of investors across multiple jurisdictions. The CBI probe remains active as authorities continue to examine the technical and financial trails behind the alleged scam.
The CBI did not immediately release further details on next legal steps or the status of other individuals named in the investigation.
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