Mumbai: ED attaches properties of Raj Kundra and Shilpa Shetty in bitcoin fraud case

Shilpa Shetty with husband and businessman Raj Kundra

The Enforcement Directorate (ED) has allegedly attached properties belonging to Raj Kundra and his wife, actress Shilpa Shetty, worth about Rs 97.79 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with a Bitcoin investment fraud case. According to ED sources, the attached properties include a residential flat in Juhu, currently registered under Shilpa's name, a residential bungalow in Pune, and equity shares in Kundra's name all worth about Rs 97.79 crore.

Kundra, who spent two months in jail in connection with a pornography case, was granted bail in September 2021. The latest action by the ED is part of a money laundering case filed against Kundra based on multiple FIRs registered by Maharashtra and Delhi Police against M/s Variable Tech Pvt Ltd, including Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simp Bhardwaj, Mahender Bhardwaj, and several multi-level marketing agents.

The FIRs allege that the accused collected significant funds in Bitcoins, approximately worth Rs 6,600 crore, from the public with false promises of a 10 per cent monthly return in Bitcoins.

According to ED sources, Kundra received 285 Bitcoin from Amit, the mastermind and promoter of the Gain Bitcoin Ponzi scam, for setting up a Bitcoin mining farm in Ukraine. These Bitcoins were sourced from proceeds of crime collected by Amit from unsuspecting investors.

Despite the deal falling through, Kundra did not return the 285 Bitcoins, presently valued at over R150 crore. Earlier search operations led to the arrest of three individuals - Simpy Bhardwaj, Nitin Gaur, and Nikhil Mahajan - who are currently in judicial custody. The main accused, Ajay and Mahendra, are still evading law enforcement. This marks the second attachment in the case, with earlier properties worth Rs 69 crore being attached by the ED.

Rs 6,600 crore
Total cost of fraud