ED Files Chargesheet Against Raj Kundra in Bitcoin Scam
The Enforcement Directorate (ED) has filed a chargesheet against businessman
Raj Kundra in connection with a bitcoin scam, stating that he was a
beneficial owner of the transactions and not just a
mediator as claimed by him.
Possession of 285 Bitcoins
According to the chargesheet, Mr. Kundra is in possession of 285 Bitcoins,
valued at over ₹150.47 crore, which he received from
late crypto-scam mastermind Amit Bhardwaj. The chargesheet was recently filed
before a special Prevention of Money Laundering Act (PMLA) court.
The ED said Kundra deliberately concealed crucial evidence, including wallet addresses, and
failed to surrender the Bitcoins. He continued to remain in possession and enjoyment of the
said proceeds of crime.
Transactions with Shilpa Shetty
Investigators also alleged that Kundra carried out a “genuine transaction” with his wife
Shilpa Shetty at far below market value
to disguise the source of funds. According to the ED, this was an attempt to layer proceeds of
crime and project them as untainted.
Origins of the Case
The money-laundering case stems from FIRs lodged by Maharashtra Police and Delhi Police against
Variable Tech Private Limited, Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj,
Simpy Bhardwaj and Mahender Bhardwaj.
Investors were promised huge returns through bitcoin mining, but the promoters allegedly
cheated them and concealed the ill-gotten Bitcoins in obscure wallets.
Bitcoin Mining Deal in Ukraine
The ED alleged that Kundra received 285 Bitcoins from Amit Bhardwaj to set up
a Bitcoin mining farm in Ukraine. Since the deal did not materialise, Kundra remains in
possession of the Bitcoins, presently valued at more than ₹150 crore.
Mediator Claim Rejected
Kundra claimed he was merely a mediator in the transaction, but the chargesheet pointed to an
agreement titled “Term Sheet” signed between him and Mahender Bhardwaj (Amit’s father).
The ED said this proves the agreement was directly with Amit Bhardwaj and that Kundra acted as
the beneficial owner, not a mediator. The fact that Kundra remembered the exact
number of Bitcoins received in five specific tranches more than seven years later
reinforced this conclusion.
Failure to Provide Wallet Addresses
Despite multiple opportunities since 2018, Kundra has failed to provide wallet
addresses of the 285 Bitcoins. He cited damage to his iPhone X soon after his initial statement
as the reason for missing information. The ED called this a deliberate attempt to
destroy evidence and conceal proceeds of crime.
Others Named
Along with Raj Kundra, the chargesheet also names businessman Rajesh Satija.
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