The Economic Offences Wing (EOW) of the Mumbai Police has arrested Gaurav Harish Mehta, a 31-year-old director at M/s Sarath & Associates, in connection with the alleged misappropriation of seized cryptocurrency assets linked to the historic GainBitcoin scam. Mehta, who was appointed as an auditor in 2018 to handle the seized assets, is accused of diverting funds worth approximately ₹30 crore (around $3.6 million).
Investigators allege that Mehta used sophisticated methods, including blockchain obfuscation and secure VPN connections, to conceal the transactions and drain over $90 million from the seized wallets. The EOW stated, “The funds were diverted using sophisticated methods including blockchain obfuscation and VPNs to conceal transactions.” The arrest has triggered increased scrutiny on the processes of forensic audits and the oversight of professionals entrusted with seized digital assets.
The case is a direct offshoot of the massive GainBitcoin multi-level marketing scam that operated from 2016 to 2017, which promised high returns and impacted thousands of investors. This latest development underscores persistent challenges in combating crypto fraud and highlights vulnerabilities in the post-seizure management of digital assets. Authorities have seized numerous electronic devices as part of the ongoing criminal probe.
The incident is prompting calls for stronger regulation and more robust security protocols in the handling of seized cryptocurrencies. Experts predict the case could lead to a tightened regulatory landscape for cryptocurrency forensics and asset management in India, emphasizing the critical need for accountability to restore market trust.
