Darwin Labs Co-Founder Detained at Mumbai Airport in Massive GainBitcoin Fraud Investigation
Ayush Varshney, co-founder of Darwin Labs, was apprehended by India's CBI at Mumbai's airport following a Look Out Circular issued as part of the ongoing GainBitcoin cryptocurrency fraud investigation.
Ayush Varshney, who serves as co-founder and chief technology officer at Darwin Labs Private Limited, has been taken into custody by India's Central Bureau of Investigation (CBI) as part of the extended GainBitcoin cryptocurrency fraud probe that has been ongoing for several years.
A press release issued on Wednesday and distributed through the CBI's official X social media account revealed that Varshney was apprehended at Mumbai's airport on Monday as he was preparing to depart from India following the issuance of a Look Out Circular targeting him. The formal arrest took place on Tuesday, after which he was transferred to CBI custody.
According to the CBI, Darwin Labs was instrumental in developing the technological backbone that powered the purported fraudulent operation, which included the GainBitcoin platform for investors and related systems designed to handle wallet management and payment processing.
This detention represents the most recent progression in India's probe into the GainBitcoin operation, a multi-million-dollar scheme that stands as one of the nation's most significant alleged cryptocurrency investment scams.
Authorities connect technology developer to platform supporting purported fraud operation
Investigators disclosed that Darwin Labs, along with its co-founding team members including Varshney, Sahil Baghla and Nikunj Jain, participated in the creation and implementation of a digital currency token called MCAP, together with its corresponding ERC-20 smart contract technology.
The CBI further stated that the firm contributed to building essential elements of the platform's technological framework, encompassing the GBMiners.com mining pool operation, a gateway for Bitcoin payments, the Coin Bank Bitcoin wallet service, and the GainBitcoin investor portal that served as the primary interface for participants in the scheme.
Ten-year-old investigation encompasses 8,000 participants and $790 million in alleged losses
GainBitcoin surfaced during the mid-2010s, positioning itself as a cloud-mining investment opportunity that prompted users to acquire Bitcoin and transfer it to the platform with guarantees of consistent, fixed returns on their investments.
According to CBI allegations, the operation ultimately transformed into a multi-level marketing scheme where participant payouts became dependent on the recruitment of additional investors. When the influx of fresh deposits began declining, the platform purportedly transitioned payouts from Bitcoin to its proprietary MCAP token, which possessed substantially reduced market value.
The scheme was reportedly orchestrated by Amit Bhardwaj, a well-known early advocate of Bitcoin in India who passed away in 2022 during a period when he was released on bail.
On Feb. 26, 2025, law enforcement officials in India executed search operations at over 60 different locations throughout the country as part of their continuing investigation into the GainBitcoin operation.
Prior statements from investigators indicate that the case encompasses approximately 8,000 individual investors, with estimated financial losses reported by government authorities amounting to approximately 6,606 crore Indian rupees (equivalent to roughly $790 million).