Kundra's 285 Bitcoins Reveal Weaknesses in India's Cryptocurrency Regulation

India’s Enforcement Directorate (ED) has brought formal accusations against Raj Kundra, a well-known entrepreneur and spouse of Bollywood actress Shilpa Shetty, in connection with a cryptocurrency case involving $31 million. Authorities claim Kundra unlawfully possessed 285

, valued at ₹150.47 crore (approximately $31 million), which he allegedly received from Amit Bhardwaj, the deceased architect behind one of India’s most significant crypto Ponzi operations Bollywood superstar's husband accused in $31M Bitcoin 'scam' [ 1 ]. The chargesheet, filed in a special court under the Prevention of Money Laundering Act (PMLA), alleges Kundra hid evidence, such as his wallet details, and conducted property deals with his wife at undervalued prices to disguise the source of the money Raj Kundra Accused of Holding 285 Bitcoins from Crypto Scam [ 2 ].

The investigation dates back to 2015–2018, when Bhardwaj, who founded GainBitcoin, ran a fraudulent operation promising high profits from Bitcoin mining. More than 8,000 people lost money, with about 80,000 Bitcoins diverted into concealed wallets Indian Businessman Indicted in $31M Crypto Scam Case [ 3 ]. The ED asserts that Kundra was not just an intermediary but a direct recipient of the scheme’s proceeds. He reportedly obtained the Bitcoins to establish a mining facility in Ukraine, a plan that was never realized. Since 2018, Kundra has repeatedly failed to provide wallet information or documentation to verify the transfers ‘Illegally held 285 Bitcoins worth Rs 150 cr’: ED files chargesheet ... [ 4 ]. Investigators highlighted that Kundra could recall receiving the 285 Bitcoins in five separate installments, which contradicts his assertion of being only a go-between A Bollywood celebrity couple is embroiled in a $31 million Bitcoin … [ 5 ].

The ED’s claims bring attention to the broader difficulties in tracing and reclaiming digital assets in India. Kundra’s situation illustrates the challenges regulators encounter when trying to liquidate seized cryptocurrencies, which in turn delays restitution for those defrauded. Legal professionals caution that unresolved, high-profile scams undermine public trust in digital currencies, especially among new investors Raj Kundra Crypto Scam Seen as Warning for India’s Crypto Market [ 6 ]. Experts stress the importance of tighter regulations and greater transparency to close loopholes that allow such schemes to flourish Indian Businessman Indicted in $31M Crypto Scam Case [ 7 ].

The investigation also names Rajesh Satija, another businessman, as a co-defendant. The ED’s report outlines Kundra’s alleged involvement through a “Term Sheet” agreement with Bhardwaj’s relatives, further implicating him in the operation Indian Businessman Indicted in $31M Crypto Scam Case [ 3 ]. The agency’s findings have raised wider concerns about investor confidence in India’s cryptocurrency sector. With asset recovery efforts stalled, victims are left in limbo, and regulatory bodies risk losing authority if they cannot adapt to the evolving landscape of digital finance ‘Illegally held 285 Bitcoins worth Rs 150 cr’: ED files chargesheet ... [ 8 ].

Kundra’s defense team has yet to issue a public statement, and the legal proceedings are still underway. Should he be found guilty, Kundra could face criminal charges and possible jail time. The verdict is expected to be a significant test of India’s ability to tackle crypto-related fraud and restore faith among investors. For now, the case underscores the pressing need for regulatory reforms to address the weaknesses exposed by major scandals like GainBitcoin A Bollywood celebrity couple is embroiled in a $31 million Bitcoin … [ 9 ].