The Central Bureau of Investigation (CBI) has arrested Ayush Varshney, co‑founder and Chief Technology Officer of Darwin Labs Private Limited, for his alleged role in the multi‑thousand crore GainBitcoin cryptocurrency fraud, a Ponzi scheme that promised high returns to investors and is now under centralized probe on the directions of the Supreme Court of India.
Case background
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According to the Press Information Bureau (PIB), the case relates to the alleged GainBitcoin Ponzi scheme floated by Variabletech Pvt. Ltd., in which investors were lured to invest in a cryptocurrency scheme on the assurance of high returns.
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Authorities state that the funds collected from investors were subsequently misappropriated, forming the core of the criminal allegations.
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The CBI is investigating the matter under Sections 120B, 406 and 420 of the Indian Penal Code, along with Section 66 of the Information Technology Act, 2000.
Role of Darwin Labs and technology infrastructure
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The CBI has said that during the investigation, the role of Darwin Labs Private Limited and its co‑founders, including accused Ayush Varshney, Sahil Baghla and Nikunj Jain, emerged in relation to the design and deployment of the crypto token known as MCAP and its corresponding ERC‑20 smart contract.
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As per the PIB release, Darwin Labs was “instrumental in developing the entire technological infrastructure” of the alleged fraudulent scheme, including the Bitcoin mining pool platform GBMiners.com, a Bitcoin payment gateway, the Coin Bank Bitcoin wallet, and the GainBitcoin investor‑facing website.
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The All India Radio (News On Air) report similarly notes that Darwin Labs and its co‑founders were linked to the “design, development and deployment” of the crypto token and the technological backbone of the scheme.
Arrest, Look Out Circular and interception
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The CBI has confirmed that a Look Out Circular (LOC) was issued against Ayush Varshney after he was found to be absconding.
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According to the PIB, on 9 March 2026 he was intercepted by Immigration authorities at Mumbai while attempting to leave India and was subsequently handed over to the CBI.
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The agency states that Varshney was formally arrested on 10 March 2026 “in accordance with law.”
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News On Air also reports that the accused was intercepted in Mumbai while attempting to leave the country and that he was arrested by the CBI thereafter.
Supreme Court directions and ongoing probe
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The CBI has stated that its investigation follows a 13 December 2023 order of the Supreme Court of India, which directed that FIRs relating to similar allegations in the GainBitcoin fraud be probed by the CBI as a common investigating agency.
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In its official release, the Bureau has emphasized that it remains “committed to conducting a comprehensive and impartial investigation into the GainBitcoin scam and bringing the perpetrators to justice,” adding that investigation in the case is continuing.
Legal and investor implications
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With the CBI invoking conspiracy, criminal breach of trust and cheating provisions of the IPC, along with the IT Act, the case underscores the legal risks associated with unregulated, high‑return cryptocurrency schemes that operate like Ponzi structures.
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Authorities have not yet disclosed final findings on the total volume of investor losses or additional arrests, and the CBI has clarified that the investigation is ongoing, which means further action against other alleged participants in the scheme cannot be ruled out at this stage.
