Audit Firm Director Arrested in ₹30 Crore Crypto Theft
Shocking twist in GainBitcoin scam investigation
Police probe collusion between auditors and officials
By Our Legal Correspondent
New Delhi: January 21, 2026:
In a case that has stunned India’s financial and legal circles, the Economic Offences Wing (EOW) of Mumbai Police arrested a director of a forensic audit firm for allegedly stealing seized digital assets worth ₹30 crore. The assets were linked to the notorious GainBitcoin scam, one of India’s largest cryptocurrency frauds. The arrest has raised serious questions about the integrity of professionals entrusted with safeguarding seized assets and the growing challenges of regulating digital currencies.
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The Arrest
The accused, identified as Gaurav Harish Mehta (31), was part of an audit firm appointed by Pune Police and Cyber Police to oversee seized cryptocurrency wallets connected to the GainBitcoin case. Instead of protecting the assets, Mehta allegedly siphoned off nearly ₹30 crore worth of crypto tokens in collusion with certain police officials.
The EOW confirmed the arrest and stated that investigations are ongoing to identify other co-conspirators. Names of additional officials, including police personnel, have reportedly surfaced during the probe.
Background: The GainBitcoin Scam
The GainBitcoin scam, led by mastermind Amit Bhardwaj, duped thousands of investors by promising high returns on cryptocurrency investments. The fraud, estimated at ₹20,000 crore, is considered one of India’s biggest crypto scams.
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Authorities seized multiple digital wallets during the investigation. These wallets contained cryptocurrency worth crores, which were to be safeguarded until court proceedings concluded. The appointment of forensic auditors was meant to ensure transparency and accountability.
Breach of Trust
Instead of fulfilling this responsibility, the audit firm director allegedly exploited his access to the seized wallets. This breach of trust has shocked both the judiciary and the public.
- Audit firms are expected to act as neutral custodians.
- Collusion with police officials magnifies the seriousness of the crime.
- The case highlights vulnerabilities in handling digital assets, which are harder to trace once transferred.
Police Investigation
The Mumbai Police’s EOW is now expanding its probe:
- Tracing stolen assets: Efforts are underway to track the siphoned cryptocurrency across exchanges and wallets.
- Identifying accomplices: Investigators suspect involvement of multiple individuals, including law enforcement officers.
- Legal consequences: The accused faces charges under sections of the Indian Penal Code (IPC) and the Information Technology Act.
Why This Case Is Shocking
This case is shocking for several reasons:
- Custodians turned culprits: Professionals appointed to safeguard seized assets misused their authority.
- Collusion with police: Allegations of police involvement undermine public trust in law enforcement.
- Magnitude of theft: ₹30 crore worth of digital assets is a massive sum, especially in a case already involving thousands of victims.
- Crypto vulnerability: Once stolen, cryptocurrency can be quickly moved across borders, making recovery difficult.
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Larger Implications
This incident has broader implications for India’s fight against financial fraud:
- Need for stronger safeguards: Courts and police must adopt stricter protocols for handling seized digital assets.
- Regulation of crypto custody: India lacks clear guidelines on managing seized cryptocurrency, leaving loopholes open for exploitation.
- Public trust: Victims of scams rely on authorities for justice. Breaches like this erode confidence in the system.
Expert Opinions
Legal experts and financial analysts have reacted strongly:
- “This is a wake-up call for regulators. Digital assets require specialized custody solutions, not traditional audit firms,” said a financial analyst.
- Lawyers argue that irretrievable breakdown of trust in custodians could push courts to demand blockchain-based monitoring systems.
- Cybercrime specialists warn that crypto thefts are harder to trace compared to traditional bank frauds.
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Conclusion
The arrest of an audit firm director for stealing seized cryptocurrency worth ₹30 crore is a shocking twist in India’s fight against financial fraud. It exposes deep flaws in the system of asset custody and highlights the urgent need for robust regulations, transparent monitoring, and accountability mechanisms.
As the investigation unfolds, the case will likely serve as a precedent for how India handles seized digital assets in future fraud cases. For victims of the GainBitcoin scam, however, this betrayal adds another painful chapter to their long wait for justice.
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