India’s Biggest Crypto Scam: SC Seeks SIT Probe into GainBitcoin Fraud

The GainBitcoin scam was one of India’s largest crypto frauds, defrauding over 100,000 investors of an estimated ₹20,000 crore (around $2.1 billion) between 2015 and 2018 through a Ponzi-style scheme promising 10% monthly returns on Bitcoin investments.

On July 14, 2026, the Supreme Court of India issued notice to the Central Government seeking its response to a plea demanding a Special Investigation Team (SIT) probe into all FIRs related to the GainBitcoin scam, which allegedly siphoned off over two lakh Bitcoins from more than one lakh investors.

Key Details of the Supreme Court’s Action

• Bench Composition: Chief Justice of India Surya Kant, Justice Joymalya Bagchi, and Justice V. Mohana
• Petitioners: Seven founding members of the Bitcoin Investors Protection Society (BIPS), led by Gautam Mahendrakumar Chordia
• Core Allegation: Investors were promised assured monthly returns through cloud-mining operations, but assets were diverted into proxy wallets, foreign accounts, and crypto exchanges
• Scale of Fraud: Over two lakh Bitcoins siphoned; more than one lakh investors affected nationwide
• FIRs Registered: More than 35 FIRs across India over the past decade

Petitioners’ Demands

• Unified SIT Probe: Headed by a retired High Court judge
• Composition: Senior officers from CBI, ED, MeitY nominee, and blockchain forensic experts
• Scope: Investigate all FIRs linked to GainBitcoin, Variable Tech, and GB Miners scams
• Mandate: Trace, freeze, and recover cryptocurrencies; investigate shell entities and proxy accounts; submit periodic reports to the Supreme Court

Context & Background

• December 2023: Supreme Court transferred GainBitcoin cases to CBI for consolidation
• CBI Action: Merged only 10 FIRs, leaving others unresolved
• Jurisdictional Vacuum: State police slowed investigations assuming CBI had full control

Challenges

• Absconding Accused: Key accused remain at large
• Fragmented Investigations: Poor coordination across states
• Blockchain Tracing: Complex proxy wallets and foreign accounts hinder recovery

At a Glance: GainBitcoin Scam SIT Plea

Aspect	Details
Date of SC Notice	July 14, 2026
Bench	CJI Surya Kant, Justices Bagchi & Mohana
Petitioners	Bitcoin Investors Protection Society (BIPS)
Victims Represented	273 identified; >1 lakh affected
Scale of Scam	>2 lakh Bitcoins siphoned
FIRs Registered	35+ across India
Proposed SIT	Retired HC judge + CBI, ED, MeitY nominee, blockchain experts
Previous SC Order	Dec 13, 2023 – CBI consolidation of FIRs