Raj Kundra granted bail in ED’s Bitcoin-linked money laundering case

PTC Web Desk:  A special court dealing with cases under the Prevention of Money Laundering Act (PMLA) on Friday granted bail to businessman Raj Kundra in connection with an alleged Bitcoin-related money laundering case.

The order was passed by Special Judge RB Rote after Raj Kundra appeared before the court following a summons issued in January. The summons came after the court took cognisance of a charge sheet filed by the Enforcement Directorate (ED). Upon his appearance, Kundra moved a bail application, which was subsequently allowed by the court.

During the hearing, his counsel, Prashant Patil, argued that Kundra has been cooperating with the ED’s investigation since 2021. The lawyer maintained that all relevant documents were already in the possession of the investigating agency, making custodial interrogation unnecessary.

However, while acknowledging the charge sheet earlier, the court had observed that witness statements and documentary evidence prima facie indicated Kundra’s involvement, along with Dubai-based businessman Rajesh Satija, in offences punishable under the PMLA.

ED’s allegations

According to the ED, Kundra allegedly received 285 Bitcoins from Amit Bhardwaj, the alleged mastermind of the Gain Bitcoin Ponzi scheme. The cryptocurrency was reportedly transferred for the purpose of setting up a Bitcoin mining facility in Ukraine.

The agency claimed that although the proposed venture did not materialise, Kundra continued to retain possession of the 285 Bitcoins, which are currently valued at over Rs 150 crore.

In its charge sheet, the ED stated that Kundra described himself as merely a mediator in the transaction. However, investigators noted that he failed to provide supporting documentary proof to substantiate this claim. The agency also referred to a “Term Sheet” agreement signed between Kundra and Amit Bhardwaj’s father, Mahendra Bhardwaj, suggesting deeper involvement.

Further, the ED argued that Kundra’s ability to recall the precise number of Bitcoins received across five tranches, even seven years after the alleged transaction, indicates that he was the beneficial owner rather than an intermediary.

The agency also alleged that despite repeated opportunities since 2018, Kundra did not furnish the wallet addresses where the Bitcoins were transferred. He reportedly cited damage to his iPhone X as the reason for the missing details, an explanation the ED termed an attempt to destroy potential evidence.

The investigation in the alleged cryptocurrency is still underway.