Bitcoin scam: PMLA court takes cognizance of ED chargesheet against Raj Kundra; issues summons

Mumbai, Jan 5 (PTI) A special PMLA court here on Monday issued summons to businessman Raj Kundra in the Bitcoin scam case after taking cognizance of the chargesheet filed against him by the Enforcement Directorate (ED).

Besides Kundra, summons was issued to Dubai based businessman Rajesh Satija. Both have been directed to appear before the court on January 19.

Kundra and Satija were added as accused in the supplementary filed by the ED in September last year before the special court for cases under the Prevention of Money Laundering Act (PMLA).

As per the probe agency, Kundra received 285 Bitcoins from the "mastermind" and promoter of Gain Bitcoin Ponzi "scam" Amit Bhardwaj for setting up a Bitcoin mining farm in Ukraine.

Since the deal did not materialise, Kundra is still in possession of 285 Bitcoins presently valued at more than Rs 150 crore, the ED claimed.

The chargesheet stated that Kundra claimed to have acted as a mediator in the said transaction but didn't provide "any underlying documentary evidence to prove the same". On the contrary, the agreement titled "Term Sheet" was signed between him and Mahendra Bhardwaj, it said.

"Thus, it can be safely concluded that the agreement was actually between Raj Kundra and Amit Bhardwaj (his father Mahender Bhardwaj) and the argument given by Kundra that he acted as a mere mediator is not tenable," the chargesheet said.

The fact that Kundra remembers the exact number of Bitcoins received in five specific tranches for more than seven years since the transactions took place "solidifies the fact that he was indeed the recipient of Bitcoins as a beneficial owner and not acted merely as a mediator", it claimed.

The probe agency has claimed that despite multiple opportunities since 2018, Kundra has consistently failed to provide the wallet addresses where the 285 Bitcoins were transferred.

He cited damage to his iPhone X soon after his initial statement as the reason for the missing information, which the ED viewed as a deliberate attempt to destroy evidence and conceal the proceeds of crime, it added. PTI AVI BNM