Darwin Labs CTO Arrested for Building $790M Scam's Infrastructure
India’s Central Bureau of Investigation (CBI) arrested Ayush Varshney, the co-founder and CTO of Darwin Labs, in a significant development for the long-running GainBitcoin fraud investigation. Varshney was detained at Mumbai airport on Monday while attempting to leave the country, acting on a Look Out Circular issued against him. He was formally arrested on Tuesday.
Authorities allege that Darwin Labs, under Varshney's technical leadership, was instrumental in creating the infrastructure for the fraudulent scheme. The CBI stated that the firm developed the GainBitcoin investor platform, the GBMiners.com mining pool, the Coin Bank Bitcoin wallet, and a Bitcoin payment gateway. The company and its co-founders, including Sahil Baghla and Nikunj Jain, are also accused of creating the MCAP token, an ERC-20 asset used later in the scheme.
Scheme Lured 8,000 Investors with 10% Monthly Returns
The GainBitcoin platform, which emerged in the mid-2010s, enticed investors by promising exceptionally high monthly returns of 10% in Bitcoin for up to 18 months. The operation, promoted through Variabletech Pte. Ltd., initially presented itself as a cloud-mining investment service. Investigators assert the funds collected from approximately 8,000 investors were subsequently misappropriated.
The operation eventually pivoted to a multi-level marketing (MLM) model where payouts depended on recruiting new participants. As new investment capital slowed, the platform ceased paying returns in Bitcoin and instead switched to its proprietary MCAP token, which held significantly less value. The investigation into the scheme, allegedly masterminded by the late Amit Bhardwaj, has intensified, leading to authorities conducting searches at over 60 locations on February 26, 2025, as part of the probe into total estimated losses of 6,606 crore rupees ($790 million).
Edgen Crypto·Mar 11 2026, 16:03
