Mumbai: In a twist to the GainBitcoin cryptocurrency fraud probe, an official of a forensic audit firm appointed by Pune Police and Cyber Police probing the fraud case, has been arrested by the Mumbai police for siphoning off seized digital assets worth nearly Rs 30 crore, in alleged collusion with police personnel.The Economic Offences Wing (EOW) on Friday arrested one of the official of the Audit firm Gaurav Harish Mehta (31) and are looking for other officials including some police officials whose names have cropped up in the investigation spanning from Mumbai and Pune. The case originates from the GainBitcoin fraud registered in 2018 at Nigdi and Dattawadi police stations in Pune, under various sections of the IPC, the MPID Act, and the Information Technology Act. Mehta’s lawyer Aftab Qureshi argued before the court that the police have falsely implicated Mehta. “They called my client Mehta to assist them in the investigations and took all information under pretext of making him witness but arrested him. He has been made scapegoat” .The 47th Metropolitan Magistrate court remanded Mehta police custody. The scam involved luring investors with promises of high returns through cryptocurrency investments.Officials of a forensic audit firm appointed by Pune Police and the Cyber Police to investigate a major cryptocurrency fraud have themselves been accused of siphoning off funds worth nearly ₹30 crore,According to police, advocate Ravindranath Patil, who had earlier worked as a director with KPMG between 2017 and 2020, was appointed as a technical expert when Pune Police engaged KPMG in August 2018 to conduct a forensic audit of seized cryptocurrency wallets.Subsequently, a Fort-based firm, was appointed as an independent forensic auditor. During this process, cryptocurrency hardware wallets seized from accused persons were handled for technical examination.The firm was engaged to conduct a technical and forensic audit of cryptocurrency hardware wallets seized in connection with the GainBitcoin scam.Investigators allege that instead of safeguarding the seized digital assets, officials of the audit company, acting in collusion with a few police personnel, physically transferred cryptocurrency from the wallets and diverted the funds to private exchanges and hardware wallets. The alleged embezzlement came to light during a detailed technical and digital footprint analysis.DCP(EOW) Sangramsingn Nisandar confirmed the arrest and said that they have seized several electronic devices during searches at multiple locations in Mumbai and other cities. Police said the probe has revealed large cryptocurrency transactions linked to the accused. Officials indicated that the investigation is likely to widen, with the possible involvement of more police personnel and influential individuals expected to surface. Further investigation is underway.
