From Startup spotlight to courtroom battle: Delhi court grants bail to Darwin La ...
In a major development in a multi-crore cryptocurrency fraud investigation, a Delhi court on Tuesday granted bail to Ayush Varshney, an alumnus of the Indian Institute of Technology (IIT), Kanpur and Co-founder and Chief Technology Officer (CTO) of Darwin Labs Private Limited. Varshney was arrested by the Central Bureau of Investigation (CBI) on March 10 in connection with the high-profile GainBitcoin scam.ALSO READSkymet forecasts ‘below normal’ monsoon, raises concern over kharif prospects
The court, while allowing the bail plea, underlined that the seriousness of allegations alone cannot justify continued custody. It observed that the purpose of granting bail is not punitive or preventive but to ensure the accused’s presence during trial proceedings. The judge also considered factors such as the delay in arrest, lack of concrete evidence, and Varshney’s prior cooperation with the Enforcement Directorate (ED).
Ponzi Scheme Allegations and Arrest Timeline
The case pertains to the alleged “Gain Bitcoin” Ponzi scheme run by Variabletech Pte Ltd, where thousands of investors were reportedly lured with promises of 10 per cent monthly returns in Bitcoin. According to the prosecution, instead of returning funds, investors were issued 100,000,000 MCAP tokens, which were described as “worthless” and allegedly used to avoid repayment obligations.
Investigators also highlighted that the scheme was aggressively marketed around early 2017 through front-page newspaper advertisements, digital media campaigns, promotional videos, and social media outreach, presenting it as a legitimate Initial Coin Offering (ICO).
Officials stated that Varshney had remained untraceable for several months, leading to the issuance of a Look Out Circular (LOC). He was intercepted by immigration authorities at Mumbai airport on March 9, 2026, while attempting to leave the country, and was formally arrested the following day.
Court Observations, Defence and CBI Arguments
Opposing the bail plea, the CBI argued that Darwin Labs, under Varshney’s technical leadership, played a key role in developing the MCAP token and the GBminers mining pool. The agency described him as the “technical brain” behind the alleged fraud and raised concerns about the vulnerability of electronic evidence.
“During the period of police custody, the accused did not cooperate with the investigation and deliberately withheld vital information, including details regarding the whereabouts of co-accused persons and possible stashes of the defrauded cryptocurrency,” CBI argued.
On the other hand, Varshney’s counsel, advocate Dhruv Gupta, contended that the core fraud was linked to Variable Tech Pte Ltd and its website gainbitcoin.com, which belonged to Amit Bhardwaj, who passed away in 2022. The defence maintained that Varshney’s involvement was limited to developing technical infrastructure such as the ‘G B Miners’ software, along with components related to M Cap cryptocurrency, Bitcoin Growth Fund, and Coin Bank E-wallet.
The court noted that Varshney had joined the ED investigation five times and had not attempted to evade proceedings, indicating no intention to abscond. It also observed that Amit Bhardwaj had been running the investment operations even before the development of the mining software by Darwin Labs.
Importantly, the court remarked that if Varshney had intended to tamper with evidence, he had “ample time of nine years” to do so before his arrest.
Who is Ayush Varshney?
As per the bail plea, Ayush Varshney is a 2014 BTech (Electrical Engineering) graduate from IIT Kanpur and has a strong track record in the technology and startup ecosystem. He has been an All-India topper in Science Olympiad and Cyber Olympiad and has received multiple scholarships.
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He has held key roles in several technology ventures, including Grexa AI, Bluegape, Nash Ventures, and Testbook, contributing significantly to product development and innovation. The plea also highlighted that he has been recognised in the startup ecosystem, including a mention in “Forbes leaders under 30” category, showcasing his credentials as an emerging innovator.
The defence emphasised that Varshney has consistently worked in the fields of software engineering, product development, and technological innovation.
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