India, March 12 -- Responding to an alert from the Mumbai immigration authorities regarding a pending Lookout Circular against him, the CBI on Tuesday arrested Ayush Varshney, co-founder and chief technical officer of Darwin Labs Private Limited, as part of its investigation into the multi-crore GainBitcoin crypto-currency fraud case. Varshney was taken to Delhi for interrogation.

Describing him as a key accused, CBI officials on Wednesday said that Varshney's firm was instrumental in developing the entire technological infrastructure of the Bitcon-based fraudulent scheme run by a firm called Variabletech Pte Ltd and its promoters. The proceeds of crime in the case are estimated to be Rs.6,606 crore at 2017 rates.

Bitcoin is a convertib...