Supreme Court Grants Bail To Man Booked For Cryptocurrency Fraud In Four Different States

The Supreme Court on Thursday granted bail to Ganesh Shivkumar Sagar, booked in connection with a cryptocurrency fraud in four different states. He has been accused of duping innocent investors to become part of a sham exchange whereby investors were lured into selling cryptocurrency.

A division bench of Justice Surya Kant and Justice Dipankar Datta granted bail in the case registered by Gujarat police in Surat noting that the investigation was complete and the charge-sheet had been filed and the trial may take some time to commence. The Apex Court also took into consideration that he had been in custody since 30.04.2022.

The Court however imposed several bail conditions including the surrender of his passport and restricted him from indulging in the sale or purchase of crypto currency.

“We, however, find merit in the apprehension of the State that the possibility of misuse of concession of bail cannot be ruled out as the petitioner might abscond or start the business of crypto currency again to allure the innocent investors.” The Court stated while imposing stringent bail conditions.

The petitioner had approached the Apex Court seeking bail pertaining to an FIR registered against him in Gujarat under Sections 406 and 409 of the Indian Penal Code, 1860, Sections 3 and 4 of the Gujarat Protection of Interest of Depositors (Financial Establishments) Act and Section 4, 5 and 6 of the Lottery Cheating and Money Circulation Scheme Act.

The petitioner is alleged to have portrayed himself as the distributor of ‘Bux Coin’, a crypto currency launched by a company named ‘Bitsolives’ of which he is a Director. It is alleged that innocent investors from different states purchased the crypto currency from the company. The petitioner is said to have subsequently set up a sham exchange termed ‘Cash Finex’ along with his co-accused and investors were lured into selling their crypto currency. The company is said to have closed the exchange after a while and disappeared.

The petitioner was taken into custody on 30.04.2022 and has been interrogated by the state of Maharashtra as well as Gujarat.

The following bail conditions were imposed on the accused while being granted bail:

(i) The petitioner shall deposit the original title deeds of property.... with the Trial Court at Gujarat.

(ii) The petitioner shall also produce two solvent sureties to the satisfaction of the Trial Court.

(iii) The passport of the petitioner shall be deposited with the Trial Court, if already not seized by the police.

(iv) The petitioner is restrained from reactivating the company Bitsolives, the Exchange Cash Finex and/or any other online module to indulge in the business of sale-purchase of crypto currency.

(v) The petitioner shall have no access to the website of Bitsolives or Cash Finex or any other similar platform, save and except with prior approval of the competent authority.

(vi) The petitioner shall be required to appear before the Trial Court regularly on every date of hearing and in case he absents from appearing, it shall be taken as a misuse of the concession of bail.

(vii) Similarly, if the petitioner is found involved in any other case of similar nature, post this order, the State of Gujarat shall be at liberty to seek cancellation of his bail order.

Case Title: Ganesh Shivkumar Sagar V. State of Gujarat, Special Leave To Appeal (Crl.) No(S).268/2023

Click here to read/download order