Raj Kundra, the entrepreneur often in headlines for his ties to showbiz, has been granted bail by Mumbai’s PMLA court in the notorious Gain Bitcoin scam. Released on Rs 1 lakh bail with travel restrictions, Kundra can now contest further ED actions from outside custody.
ED accused him in a 2023 supplementary filing, alleging possession of 285 Bitcoins from scam kingpin Amit Bhardwaj for a failed Ukraine venture. Today’s value: over Rs 150 crore. But lawyer Prashant Patil turned the tables, labeling ED’s arithmetic ‘capricious.’
The 2017 transfer occurred when Bitcoins totaled Rs 6.6 crore. ED’s choice of April 2024 rates—Rs 52 lakh per coin—ignores this, Patil argued forcefully. He challenged: ‘Legal valuation ties to crime-date proceeds. Why exploit crypto volatility for inflated claims?’ Patil warned against precedent-setting abuse, where agencies pick favorable dates post-facto.
Kundra’s spotless record—appearing for every ED summon since 2018—bolstered his plea. Post-bail, plans include High Court intervention against persistent notices. This ruling highlights tensions in prosecuting crypto-linked money laundering, where asset values swing wildly.
Background: Gain Bitcoin lured masses with Ponzi promises, collapsing amid Bhardwaj’s flight and suicide. Thousands lost life savings. Kundra’s peripheral role now questions ED’s broad-net strategy versus precise enforcement.