A special PMLA court has granted bail to Raj Kundra in a Bitcoin linked money laundering case after the Enforcement Directorate named him in a supplementary charge sheet. The ED alleges that Kundra retained 285 Bitcoins connected to the Gain Bitcoin scheme, currently valued at over ₹150 crore. He was not arrested during the probe but appeared before the court following summons. The court directed him to furnish surety and seek prior permission before travelling abroad. The investigation continues under the Prevention of Money Laundering Act.
Raj Kundra Granted Bail in PMLA Bitcoin Money Laundering Case; ED Alleges ₹150 Crore Crypto Trail
A PMLA court granted Raj Kundra bail in a Bitcoin linked money laundering case after the Enforcement Directorate named him in a supplementary charge sheet. The agency alleges he retained 285 Bitcoins worth over ₹150 crore from the Gain Bitcoin scheme.
The PMLA court granted bail to Raj Kundra in a high value Bitcoin linked money laundering case, after he appeared pursuant to a judicial summons. The development follows the Enforcement Directorate’s supplementary charge sheet naming him among eighteen accused.
The special court under the Prevention of Money Laundering Act allowed bail upon a surety of ₹1 lakh and directed Kundra to seek prior court permission before travelling abroad. He was not arrested during the investigation.
Special Judge RB Rote had earlier taken cognisance of the supplementary prosecution complaint filed by the Enforcement Directorate in September 2025, prompting the summons issued in January.
Though Kundra was never taken into custody, legal procedure required him to formally apply for bail once the court acknowledged the charge sheet and initiated proceedings under the PMLA framework.
According to the ED, the case is linked to the alleged Gain Bitcoin Ponzi network masterminded by Amit Bhardwaj, who is accused of orchestrating one of India’s largest crypto investment frauds.
Investigators claim Kundra received 285 Bitcoins in 2017 for establishing a Bitcoin mining project in Ukraine that was intended to be transferred to an Israeli national. The mining venture allegedly never materialised.
The agency states that despite the project’s failure, Kundra retained the 285 Bitcoins. At present market valuation, the digital assets are estimated to be worth more than ₹150 crore.
Bitcoin Money Laundering Allegations and ED Investigation Trail
The ED’s charge sheet asserts that Kundra did not disclose the digital wallet address where the cryptocurrency was transferred, despite multiple opportunities since 2018 during questioning and document collection exercises.
While taking cognisance, the court recorded that witness statements and documentary evidence collected during investigation prima facie indicated involvement in an offence punishable under the Prevention of Money Laundering Act.
The prosecution rejected Kundra’s claim that he merely acted as a mediator. Investigators pointed to a signed term sheet agreement between Kundra and Mahendra Bhardwaj, father of Amit Bhardwaj.
According to the ED, the existence of this agreement undermines the intermediary defence and indicates structured financial understanding between parties linked to the crypto scheme.
The charge sheet further highlights that Kundra recalled the precise number of Bitcoins received across five tranches, years after the transactions occurred. The agency argues this supports beneficial ownership rather than passive facilitation.
Appearing for Kundra, advocate Prashant Patil submitted that his client has cooperated with investigators since 2018 and that custodial interrogation was unnecessary as all relevant documents were already in the agency’s possession.
Also Read: Mumbai Travel Agency Fraud Sparks Law Reform Call.
PMLA Proceedings, Crypto Regulation, and Wider Implications
This case emerges at a time when India continues to tighten scrutiny over cryptocurrency transactions amid global regulatory flux and domestic tax enforcement measures on virtual digital assets.
The Prevention of Money Laundering Act empowers authorities to attach properties derived from proceeds of crime and prosecute individuals found directly or indirectly involved in laundering activities.
Legal experts observe that courts granting bail at the cognisance stage does not dilute the seriousness of allegations but reflects procedural safeguards where arrest was not deemed essential during investigation.
The Gain Bitcoin case has previously drawn attention for allegedly duping thousands of investors across multiple Indian states, promising extraordinary monthly returns through crypto mining contracts.
Financial investigators have repeatedly cautioned that cryptocurrency based investment schemes exploit regulatory grey zones, technological opacity, and cross border wallet transfers to obscure fund trails.
The present proceedings will test how Indian courts interpret digital asset retention, beneficial ownership, and disclosure obligations under anti money laundering statutes.
For policymakers, the matter underscores the urgency of coherent crypto regulation balancing innovation with investor protection and financial integrity safeguards.
For investors, the case is a reminder that high return crypto promises require careful due diligence, especially when structured through informal agreements and offshore mining narratives.
Sprouts News will continue to monitor developments as the trial progresses and examine how enforcement agencies trace digital assets in complex financial crime investigations.
Readers’ Appeal:
Unmesh Gujarathi, investigative journalist at Sprouts News, invites whistleblowers and citizens to share credible documents, tips, or leads on corruption, financial fraud, or public interest issues. If you have verified information, contact confidentially on 9322755098.
