GainBitcoin is his next venture, which we understand investors are on board via the act of selling Bitcoin investment plans and Cloud mining plans which are capable of powering the mining operations of GBMiners. These plans are in form of Bitcoins and are offered in form of mining contracts giving out payments in lieu of investments on a monthly basis.
To those who are on board, GainBitcoin hosting seminars where people who attended were given a detailed explanation on how they could make money from investing in GainBitcoin. The former ICICI Lombard Executive Srivastava was more interested in knowing about Bitcoin and as such, he attended some of the GainBitcoin organized seminars as far back as 2015.
He stated that the message focused more on returns and the level of profitability obtainable from Bitcoin mining. It was stated that a person who invested 1BT will get 1.8BTC after a period of 18months. Most people didn’t exactly understand the mining process; however, the statement of getting 1.8BTC from an investment of 1BTC was enough to make them consent. To give a clearer perspective, the bullish Indian stock market of recent times could only return 38% profits in that same period.
Aria Thaker, a reporter for the caravan Magazine in a cover story peels the layers on the Bhardwaj’s empire. Thaker stated that for the article, she held 4 different interviews with Amit Bhardwaj and in those interviews; he repeatedly contradicted himself and was evasive whenever asked about the relationship between GainBitcoin and GBMiners. He also admitted reluctantly that he may have told a few lies to investors concerning some crucial information about GainBitcoin investments. He said they felt good after seeing the inflated figures on the GainBitcoin’s website.
Thaker also had another interview with another Bitcoin expert and miner – Stuart Trusty. She stated that during the interview, she was told by Trusty that the returns and figure on the GainBitcoin site were mathematically impossible and that the whole operation must likely be a Ponzi. Simply put, a Ponzi scheme is a program where you have to borrow from Paul to pay Peter. Trusty concluded by saying the whole premise upon which GainBitcoin was operating is that there will always be new investors, bringing in fresh capital to pay the old ones and a shortage in new investments will spell doom for the entire operation.
The doubts over how legal it is, as well as the MLM structure which was devised to penetrate the market, are some of the reasons why the headquarter was sited abroad, however, the overseas company associated with GainBitcoin remains odd. The contact page on the GainBitcoin website has a Singapore address on it and going by the registration documents, the company in question is one that Amit Bhardwaj is a part of.
If you decide to investigate further, by clicking on the links on the bottom of the website, the “Team and Company Information” link will redirect you to a PDF document about Amaze Mining & Research Ltd group of companies.
All other companies are present in the group, including GBMiners but there is no mention of GainBitcoin. Further research shows that the Amaze Mining & Research is registered in Hong Kong and Amaze Mining & Blockchain Research Ltd is another company which shows up on the Chinese company registration site. Bhardwaj posted on LinkedIn earlier this year, around the month of April that the Amaze Mining & Research has a team of 150 members, with operational offices in China, Hong Kong and Dubai.
Many modern businesses have cross-country corporate holdings however, the linkages aren’t made clear. This is more common in businesses that are offering unbelievable returns. Srivastava stated that he witness the quick increase of interests in Bitcoin and even GainBitcoin, especially during the period of demonetization. He also stated that he has written to Central Bureau of Investigation and Enforcement directorates about the dealings of Bhardwaj and his company.
Bhardwaj claims he works from Singapore and Dubai and has acknowledged risks when a prospective investor asked him about what will happen if the GainBitcoin suddenly bellies up and disappears like other MLM schemes before it such as QNet, Click, SpeakEasy, etc. Bhardwaj stated that the problem with India is that every police constable will come and stand in front of my office if he opened it here. He was seen discussing with a few people in what is assumed to be his Delhi office – “How will I work in India when there are no laws? I will open the largest office here if I get immunity from the police.”
In addition to the GBMiners and GainBitcoin, Bhardwaj’s Amaze Bitcoin and Blockchain Research also own a Bitcoin exchange, Paybitz, Bitex and a Bitcoin wallet – Coinbank, a Bitcoin wallet.