Audit Official Arrested in Major Cryptocurrency Fraud Probe
Mumbai police have made a significant arrest in the ongoing GainBitcoin cryptocurrency fraud investigation. The Economic Offences Wing arrested Gaurav Harish Mehta, a 31-year-old official from a forensic audit firm. Authorities accuse him of siphoning seized digital assets worth nearly ₹30 crore.
Collusion with Police Personnel Alleged
Investigators believe Mehta acted in collusion with some police personnel. The alleged embezzlement involved physically transferring cryptocurrency from seized wallets. Funds were diverted to private exchanges and hardware wallets according to police findings.
The case originated from fraud complaints registered in 2018 at Nigdi and Dattawadi police stations in Pune. Pune Police and Cyber Police had appointed the forensic audit firm to examine seized cryptocurrency wallets. Instead of safeguarding these digital assets, officials allegedly misappropriated them.
Defense Claims False Implication
Mehta's lawyer Aftab Qureshi presented a different narrative in court. He argued that police falsely implicated his client after calling him to assist with investigations. "They took all information under pretext of making him witness but arrested him," Qureshi stated. He claimed Mehta has been made a scapegoat in this complex case.
The 47th Metropolitan Magistrate court remanded Mehta to police custody following his arrest. This development adds another layer to the already complicated GainBitcoin fraud investigation.
Technical Expert's Role Under Scrutiny
Police revealed that advocate Ravindranath Patil played a key technical role in the forensic audit. Patil had previously worked as a director with KPMG between 2017 and 2020. Pune Police engaged KPMG in August 2018 to conduct forensic audit of seized cryptocurrency wallets.
Subsequently, a Fort-based firm received appointment as an independent forensic auditor. This firm handled cryptocurrency hardware wallets seized from accused persons for technical examination. Their mandate included conducting technical and forensic audit of these seized wallets.
Investigation Widens with More Arrests Expected
DCP Sangramsingh Nisandar of the Economic Offences Wing confirmed the arrest. Police have seized several electronic devices during searches at multiple locations in Mumbai and other cities. The probe has revealed large cryptocurrency transactions linked to the accused according to officials.
Investigators indicate the investigation will likely widen further. They expect possible involvement of more police personnel and influential individuals to surface. The alleged embezzlement came to light during detailed technical and digital footprint analysis.
Background of the GainBitcoin Scam
The GainBitcoin fraud involved luring investors with promises of high returns through cryptocurrency investments. Police registered the case under various sections of the IPC, the MPID Act, and the Information Technology Act. What began as a straightforward fraud investigation has now revealed alleged corruption within the investigative process itself.
Mumbai police continue their probe into this complex financial crime. They are looking for other officials including some police personnel whose names have emerged during the investigation spanning Mumbai and Pune.
