Overview
The Enforcement Directorate has filed a chargesheet before a special PMLA court alleging businessman Raj Kundra is the beneficial owner of 285 Bitcoins valued at Rs 150.47 crore that originated from late crypto-scam mastermind Amit Bhardwaj, according to the report .
The chargesheet alleges Kundra concealed crucial evidence, did not surrender the Bitcoins, and remains in possession and enjoyment of the proceeds of crime in the form of BTC, the report states .
Key allegations
- ED alleges Kundra is the beneficial owner of 285 Bitcoins received from Amit Bhardwaj, valued at approximately Rs 150.47 crore, per the chargesheet summary reported .
- The agency claims he concealed evidence and failed to provide or surrender wallet details for the Bitcoins despite repeated opportunities since 2018, the report notes .
- ED further alleges a below-market-rate transaction with actor Shilpa Shetty was used to disguise the origin of criminal proceeds, according to the report .
- The chargesheet asserts attempts to “layer” proceeds and project them as untainted, thereby frustrating PMLA proceedings, as reported .
Case background
The laundering probe stems from FIRs registered by Maharashtra and Delhi police against Variable Tech Pvt Ltd and individuals including Amit, Ajay, Vivek, Simpy, and Mahender Bhardwaj, as summarized in the report .
Investigators allege promoters promised outsized returns from Bitcoin mining, defrauded investors, and concealed ill-gotten Bitcoins in obscure digital wallets, according to the report .
The Bitcoin trail
ED states the Bitcoins were meant for setting up a Bitcoin mining farm in Ukraine, but although the deal did not materialize, Kundra allegedly retained possession of the Bitcoins, the report says .
The chargesheet cites a “Term Sheet” signed between Kundra and Mahendra Bhardwaj and notes Kundra’s precise recall of receiving Bitcoins in five tranches after seven years as reinforcing beneficial ownership rather than mere mediation, per the report .
Evidence gaps
Since 2018, Kundra has not provided the wallet addresses where the 285 Bitcoins were transferred, attributing the lapse to damage to his iPhone X after his initial statement, which ED interprets as deliberate destruction of evidence, according to the report .
The agency argues this failure to disclose wallet details, combined with alleged layering, supports its contention that the Bitcoins constitute proceeds of crime, the report notes .
Other accused
The chargesheet also names businessman Rajesh Satija as an accused, as reported .
Investigators say Kundra’s claim of being only a mediator is unsupported by underlying documentation, with the signed “Term Sheet” pointing to a direct arrangement, per the report .
What’s next
With the chargesheet filed before a special PMLA court, the matter proceeds under the Prevention of Money Laundering Act framework, as reported .
ED’s assertions regarding beneficial ownership, concealment, and layering will be scrutinized in court, alongside the alleged link to the mining-focused investment scheme and undisclosed wallets, the report indicates .
