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GainBitcoin Crypto Scam Case: CBI Arrests Darwin Labs CTO and Co Founder Ayush Varshney

GainBitcoin Crypto Scam Case: CBI Arrests Darwin Labs CTO and Co-Founder Ayush Varshney

Authorities say investors were promised high Bitcoin returns through a cloud mining investment scheme.

Written by Rahul Dhingra, Edited by David Delima | Updated: 11 March 2026 17:18 IST

GainBitcoin Crypto Scam Case: CBI Arrests Darwin Labs CTO and Co-Founder Ayush Varshney

Photo Credit: Unsplash/Kanchanara

CBI investigates the GainBitcoin scheme, promising high Bitcoin returns to investors

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Highlights

CBI detains Darwin Labs CTO linked to GainBitcoin probe
Authorities suspect the cloud mining scheme functioned as a Ponzi scheme
MCAP token and crypto platforms examined in the investigation

The Central Bureau of Investigation (CBI) on Wednesday said it has arrested Ayush Varshney, Co-Founder and Chief Technology Officer of Darwin Labs Private Limited, into custody. This GainBitcoin cryptocurrency scam makes it one of the most significant crypto fraud cases in India. As per the officials, the scheme enticed investors with promises of unusually high returns from Bitcoin-related investments. Officials allege that the funds, rather than supporting legitimate cryptocurrency mining or trading activities, were subsequently misappropriated. The investigation is currently focused on Sections 120B, 406, and 420 of the Indian Penal Code. Additionally, Section 66 of the Information Technology Act, 2000, is also being applied.

CBI Probes Alleged Ponzi-Style Crypto Investment Scheme

According to the CBI's press release, a Look Out Circular (LOC) had been issued against Varshney as he was absconding. On March 9, immigration authorities at Mumbai airport intercepted him while he was allegedly attempting to leave India. He was subsequently handed over to the CBI and formally arrested on March 10.

The investors in the GainBitcoin scheme were led to believe they would receive consistent monthly returns in Bitcoin, generated through a cloud mining program. Authorities are now looking into whether the operation functioned like a Ponzi scheme. The investigation is based on claims that returns to earlier investors were paid using the money from newer participants, instead of being generated by actual mining operations.

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When payouts became difficult to sustain, investors were compensated with a cryptocurrency token known as MCAP instead of Bitcoin.

During the investigation, the role of Darwin Labs Private Limited and its co-founders, including Varshney, Sahil Baghla, and Nikunj Jain, emerged in connection with the development of the technical infrastructure used in the alleged scheme. Investigators said the company helped design and deploy the MCAP cryptocurrency token and its associated ERC-20 smart contract.

According to the CBI, Darwin Labs was also involved in building platforms linked to the project, including the GBMiners.com Bitcoin mining pool, a Bitcoin payment gateway, the Coin Bank Bitcoin wallet, and the GainBitcoin investor-facing website.

The GainBitcoin probe is centred on accusations of fraud totalling thousands of crores, impacting investors in several states. The CBI confirmed that the investigation is still active, and more updates on the case are anticipated.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Crypto Scam, Cryptocurrency, Bitcoin

Rahul Dhingra

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Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More