Mumbai police’s Economic Offences Wing arrested a director of a forensic‑audit firm accused of siphoning seized cryptocurrency valued at around ₹30 crore linked to the 2018 GainBitcoin fraud. Authorities allege the accused diverted digital assets to private exchanges and wallets instead of safeguarding them for investigation.

The Economic Offences Wing in Mumbai arrested a director from a forensic‑audit firm in mid‑January 2026 in connection with allegations that seized cryptocurrency worth approximately ₹30 crore was improperly diverted during the long‑running GainBitcoin fraud probe. Police allege the accused transferred seized digital assets to private exchanges or personal wallets rather than securing them in court‑approved custody or state‑controlled accounts, thereby complicating recovery efforts and widening scrutiny of how law enforcement and appointed custodians handle crypto evidence. The arrest is a significant development in the 2018 GainBitcoin case—one of India’s earliest and most prominent crypto Ponzi/exit schemes—and may lead to expanded inquiries into auditors, custodians and intermediaries that handled seized crypto assets. Prosecutors are expected to examine transaction records, exchange logs and wallet flows to trace the diverted funds and identify potential accomplices. The episode has prompted calls for clearer protocols and stronger oversight on handling seized digital assets to prevent misappropriation during criminal proceedings.