Bitcoin Scam Investigation: Raj Kundra Case Set for February Court Hearing
Indian businessman Raj Kundra will face court proceedings on February 20, 2026, as authorities pursue allegations linking him to a major Bitcoin fraud scheme involving properties worth approximately ₹97.79 crore ($11.8 million). The Special PMLA court in Mumbai has scheduled the next hearing after Kundra's legal team filed documents requesting access to the chargesheet, according to statements from his advocate Prashant Patil.
Background and Context
The investigation dates back to April 2024 when India's Enforcement Directorate (ED) attached assets belonging to Kundra and his wife, actress Shilpa Shetty, as part of a money laundering probe connected to the Gain Bitcoin Ponzi scheme. Authorities allege the pair collected substantial funds through Bitcoin investments after promising investors 10% returns that never materialized. The case highlights growing regulatory challenges in India as cryptocurrencies gain popularity despite unclear legal frameworks.
Key Figures and Entities
Central to the allegations is Amit Bharadwaj, identified by investigators as the mastermind behind the Gain Bitcoin Ponzi scam. According to official complaint documents, Kundra received 285 Bitcoins from Bharadwaj valued at ₹150,47,30,175 ($182 million) based on market rates from April 16, 2024. The case involves the Enforcement Directorate, India's primary financial investigation agency, operating under the Special PMLA court system established to handle money laundering cases. Kundra, a British citizen, has questioned the ED's jurisdiction over transactions involving parties from multiple countries.
Legal and Financial Mechanisms
Investigators allege Kundra engaged in sophisticated money laundering techniques by conducting transactions with his spouse at rates "far below market value" to disguise the origin of funds obtained through criminal activities. Official documents claim he "deliberately refused to divulge the wallet addresses and failed to surrender the proceeds of crime," using layering techniques to give legitimate appearance to illicit funds. The case highlights how cryptocurrency's pseudonymous nature presents unique challenges for financial investigators tracking cross-border transactions.
International Implications and Policy Response
The Kundra case underscores ongoing international challenges in regulating cryptocurrency markets and preventing their use for financial crimes. With Kundra's British citizenship and the multi-jurisdictional nature of the alleged transactions (involving India, Dubai, and Israel), the case illustrates the difficulty domestic agencies face investigating blockchain-based financial crimes that transcend borders. Indian authorities have increasingly focused on cryptocurrency-related fraud since announcing plans to introduce a regulatory framework for digital assets, though comprehensive legislation remains pending.
Sources
This report draws on statements provided to ANI by advocate Prashant Patil, official Enforcement Directorate complaint documents, court scheduling information from the Special PMLA court in Mumbai, and previous public statements made by Raj Kundra regarding the investigation.
