Money Laundering Charges Filed Against Businessman
Indian authorities have formally charged businessman Raj Kundra with money laundering offenses related to approximately 285 Bitcoins, valued at around $18 million. The Enforcement Directorate filed the charge sheet before a special Prevention of Money Laundering Act court, alleging that Kundra received the cryptocurrency from late crypto scam mastermind Amit Bhardwaj.
According to the charges, Kundra concealed crucial evidence and failed to surrender the digital assets linked to criminal activities. The agency claims he remains in possession of the Bitcoin, effectively enjoying the proceeds of crime. This case represents one of the more significant cryptocurrency-related money laundering investigations in India’s recent enforcement history.
Origins in Bitcoin Mining Investment Scheme
The money laundering case stems from multiple police complaints filed in Maharashtra and Delhi against Variable Tech Private Limited and several individuals, including the Bhardwaj family members. Authorities allege that promoters promised investors substantial returns for investments in a Bitcoin mining program, but instead defrauded them.
Investigators claim the suspects transferred the illegally obtained Bitcoin into obscure online wallets. The Enforcement Directorate specifically alleges that Kundra received the 285 Bitcoins from Amit Bhardwaj for establishing a Bitcoin mining farm in Ukraine. Though the mining operation never materialized, authorities contend Kundra retained possession of the cryptocurrency instead of returning it to the defrauded investors.
Mediator Claim Disputed by Evidence
Kundra reportedly claimed he acted merely as a mediator in the transaction, but the agency disputes this assertion. The charge sheet states, “Thus, it can be safely concluded that the agreement was actually between Raj Kundra and Amit Bhardwaj, and the argument given by Kundra that he acted as a mere mediator is not tenable.”
Investigators point to Kundra’s ability to recall the exact number of Bitcoin received in five different transactions after seven years as evidence that he was the beneficial party rather than an intermediary. This detailed recollection, according to authorities, suggests deeper involvement than mere mediation.
Evidence Concealment Allegations
Since 2018, Kundra has allegedly failed to provide the wallet addresses where the 285 Bitcoins were transferred. He attributed this inability to damage to his iPhone X shortly after his initial apprehension and questioning. However, the Enforcement Directorate interprets this as a deliberate act to destroy crucial evidence.
The agency also alleges that Kundra conducted a transaction with his wife, actress Shilpa Shetty, selling assets to her at below-market rates. Authorities claim this was an attempt to disguise the origin of funds obtained through criminal activities. The charge sheet further accuses Kundra of trying to frustrate investigations by layering the proceeds of crime and presenting them as legitimate assets.
Another businessman, Rajesh Satija, has also been named as an accused in the case. The investigation continues as authorities work to trace the movement of the cryptocurrency and establish the full extent of the alleged money laundering operation.
