From Startup spotlight to courtroom battle: Delhi court grants bail to Darwin Labs CTO
In a significant development in the ongoing investigation into a multi-crore cryptocurrency fraud, a Delhi court has granted bail to Ayush Varshney, the Chief Technology Officer (CTO) of Darwin Labs Private Limited and an alumnus of the Indian Institute of Technology (IIT) Kanpur. Varshney was arrested by the Central Bureau of Investigation (CBI) on March 10, 2026, in connection with the high-profile GainBitcoin Ponzi scheme.
Background of the Case
The GainBitcoin Ponzi scheme, allegedly operated by Variabletech Pte Ltd, has reportedly defrauded thousands of investors who were lured by promises of 10 percent monthly returns in Bitcoin. Instead of returning the invested funds, the scheme’s operators issued 100 million MCAP tokens, which have been described as “worthless” and were allegedly used to evade repayment obligations.
The scheme was aggressively marketed starting in early 2017 through various channels, including front-page newspaper advertisements, digital media campaigns, promotional videos, and social media outreach, presenting it as a legitimate Initial Coin Offering (ICO).
Arrest and Bail Proceedings
Varshney was reportedly untraceable for several months, prompting the issuance of a Look Out Circular (LOC) against him. 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.
During the bail hearing, the court emphasized that the seriousness of the allegations alone cannot justify continued custody. The judge noted that the purpose of bail is not punitive or preventive but to ensure the accused’s presence during trial proceedings. The court considered several factors, including the delay in Varshney’s arrest, the lack of concrete evidence against him, and his prior cooperation with the Enforcement Directorate (ED).
Arguments from the CBI and Defense
In opposing the bail plea, the CBI argued that Darwin Labs, under Varshney’s technical leadership, played a crucial role in the development of the MCAP token and the GBminers mining pool. The agency labeled him the “technical brain” behind the alleged fraud and expressed concerns regarding the vulnerability of electronic evidence.
The CBI also claimed that Varshney did not cooperate during police custody and withheld vital information, including details regarding co-accused individuals and potential stashes of the defrauded cryptocurrency.
In contrast, Varshney’s defense counsel, advocate Dhruv Gupta, argued 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 defense maintained that Varshney’s involvement was limited to the development of technical infrastructure, such as the ‘G B Miners’ software and components related to M Cap cryptocurrency, Bitcoin Growth Fund, and Coin Bank E-wallet.
The court noted that Varshney had participated in ED investigations five times and had not attempted to evade proceedings, indicating no intention to abscond. Furthermore, 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?
Ayush Varshney is a 2014 BTech (Electrical Engineering) graduate from IIT Kanpur, known for his strong track record in the technology and startup ecosystem. He has been recognized as an All-India topper in both the Science Olympiad and Cyber Olympiad, receiving multiple scholarships throughout his academic career. Varshney has held key roles in various technology ventures, including Grexa AI, Bluegape, Nash Ventures, and Testbook, contributing significantly to product development and innovation.
His achievements have garnered attention in the startup ecosystem, including a mention in the “Forbes Leaders Under 30” category, highlighting his credentials as an emerging innovator. The defense emphasized Varshney’s consistent work in software engineering, product development, and technological innovation.
Conclusion
The granting of bail to Ayush Varshney marks a pivotal moment in the ongoing legal proceedings surrounding the GainBitcoin Ponzi scheme. As the case unfolds, it will be crucial to monitor the developments in both the investigation and the trial. The court’s observations regarding the lack of concrete evidence and Varshney’s cooperation with authorities may play a significant role in shaping the outcome of this high-profile case.
Note: This article is based on information available as of April 7, 2026, and may be subject to updates as new developments arise.
