On Tuesday, the Enforcement Directorate (ED) called businessman Raj Kundra, husband of Bollywood actress, Shilpa Shetty to inquire about his involvement in Bitcoin Ponzi scheme.
The Businessman Raj Kundra was at ED office on Tuesday and was questioned about his connection in illegal bitcoin transactions. The officials said that there some situational cases in connection with Kundra and therefore he has been asked to record his statement.
Recently, the Enforcement Directorate had registered a criminal case under the Prevention of Money Laundering Act (PMLA) against GainBitcoin website. Sources claimed that the Indian crypto investor, Amit Bhardwaj, and eight others have launched the website. The declarations are such that about 8000 investors lost around Rs 2000 crore funds by transacting in this scheme.
Earlier the Pune Police had arrested Bhardwaj and his sibling Vivek as ED had filed FIR against them. However, the Bhardwaj was in connection with firms like GB21, MCAP, GBMiners, and GainBitcoin.
Meanwhile, the situation regarding Raj Kundra is not yet cleared. Although he is not new to the controversies, he was recently involved in IPL betting scandal. Thus, a ban is imposed on Kundra for life from all cricket activities. Noticeably, the authorization he co-owns, Royal Rajasthan was also banned for 2 years and recently made a comeback in last IPL season.
Recently, the income tax department had issued notices to bitcoin traders for those whose trades more than Rs1 crore. Even, several times RBI cautioned bitcoin users regarding high risk involved with crypto trading. In last Monetary Policy Committee meeting, RBI said banks are not allowed to deal with crypto trading. The RBI surveyed that around 3 million people in India deal in Rs 100 to 200 crore worth of crypto assets each day.
RBI stated in a circular that was released on April 6, 2018,
“Reserve Bank has repeatedly through its public notices on December 24, 2013, February 01, 2017 and December 05, 2017, cautioned users, holders and traders of virtual currencies. Including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs”.
Image Source: Raj Kundra