Chitra Sonawane. 5-BA-4640-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CRIMINAL APPELLATE JURISDICTION Criminal Bail Application No.4640 of 2024 Prashantkumar Kamleshbhai Brhambhatt Aged 34 yrs, Gujrat, Adult, Indian Inhabitant, R/at 22/211, Marutidham society, Makarpura, near Saibaba temple, Vadodara, Gujrat- 390010. … Applicant. Vs. The State of Maharashtra through Cyber Police Station, Pune …Respondent. --- Mr Ali Kaashif Khan Deshmukh a/w Ms Snigdha Khandelwal, Mr Mohd Farid, Mr Abrar Burondkar and Mr Rajiv Sone for the applicant. Mr SV Walve, APP for the respondent / State. PSI RP Rewale, Cyber, Pune. --- Coram : R.N.Laddha, J. Date : 27 November 2025. P.C. : By this application, the applicant (accused No.2) seeks bail in connection with CR No.54 of 2021, registered with the Cyber Police Station, Pune, for offences punishable under Sections 406 and 420 read with 34 of the Indian Penal Code, Section 66D of the Information Technology Page No. 1 of 10 ____________________________________________ 27 November 2025 CHITRA SANJAY SONAWANE Digitally signed by CHITRA SANJAY SONAWANE Date: 2025.11.28 19:30:45 +0530 Chitra Sonawane. 5-BA-4640-2024.doc Act, 2000, and Sections 3 and 4 of the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999. 2. It is the case of the prosecution that in 2017, the informant’s acquaintances, Santosh Pawar and Ganesh Vhatkar, introduced the informant to Prakash Chaudhary and Kaupurchand Prajapati, who informed the informant about an investment scheme named “BUXCOIN”, offered by a company called Bitsolives. The scheme purportedly promised a 10% monthly return for 20 consecutive months. The informant was further advised that payments were to be made in Bitcoin to accused No.1, after which an investment identification would be generated on the company’s website. Relying on these representations, the informant transferred Rs.8,69,687/-, equivalent to 2.09016133 BTC, via the Zebpay cryptocurrency application to a blockchain address provided by Ganesh Vhatkar, Santosh Pawar, and Kaupurchand Prajapati for onward transmission to accused No.1. Subsequently, the informant’s investment ID, identified as the “Diamond Plan” with number 246006, was created on the Bitsolives website, and login credentials were issued to him. The Page No. 2 of 10 ____________________________________________ 27 November 2025 Chitra Sonawane. 5-BA-4640-2024.doc informant then learnt from Prakash Chaudhary that the applicant and accused Nos.1 and 5 were the directors of Bitsolives. The informant was also invited to attend a seminar in Malaysia, which would reveal further details about the company. Acting on this inducement, the informant travelled to Malaysia and attended the seminar at the Vivatel Hotel in Kuala Lumpur. The chief guest was accused No.4, who represented himself as the owner of Bull Infotech, and accused No.3 as the administrator. Accused Nos.1, 2, and 5 were also present. 3. During the seminar, detailed presentations were given on BUXCOIN, extolling its alleged advantages and promising substantial profits. It was represented that investors would receive returns consisting of 70% in Euro trading and 30% in BUXCOIN over 20 months. Attendees were encouraged to make additional investments and to solicit others to do likewise. At the seminar, accused No.4 announced a special purchase price of 0.10 per BUXCOIN for immediate investors. Trusting these assurances, the informant and six other individuals made further investments, with the informant investing an additional amount of Rs.2,50,250/-. At the seminar, accused No.1 Page No. 3 of 10 ____________________________________________ 27 November 2025 Chitra Sonawane. 5-BA-4640-2024.doc announced a forthcoming seminar in Dubai and the launch of a proprietary exchange, Cash Finex, participation in which was limited to those who achieved business targets of €25,000. Motivated by this, the informant secured loans against his residence and transferred Rs.20,34,462/- to accused No.1 via bank transactions and cryptocurrency platforms. In return, two “Diamond” IDs and one “Platinum” ID were generated for the informant. He then attended the Dubai seminar where Cash Finex was launched, accompanied by demonstrations showing how BUXCOIN could allegedly be converted into Bitcoin or US Dollars on the exchange. A new platform with CFX Options Trading/Binary Options Gamified was also introduced. Based on these representations, the informant and others registered on the Cash Finex website and transferred their BUXCOIN holdings accordingly. Further, as per accused No.1’s instructions, the informant facilitated an investment of Rs.8,00,000/- made by his friend Tushar Shinde by depositing the amount in his own bank account and subsequently transferring the funds to 24k Gold and Jewellery (OPC) Pvt. Ltd. 4. It is further alleged that accused No.4 also addressed Page No. 4 of 10 ____________________________________________ 27 November 2025 Chitra Sonawane. 5-BA-4640-2024.doc investors via Zoom, announcing the launch of a new BUXCOIN wallet at www.buxcoins.com, claiming that holding coins in this wallet would generate additional mining profits. Subsequently, the platform Moyo Trade was launched and operated for approximately six months, promising returns of 80%. Approximately two months later, accused No.1 introduced another investment scheme claiming fixed returns of 5%, 7%, and 8% on Forex trading investments. 5. However, the value of BUXCOIN dropped and was displayed at Rs.1.25 per coin, and investors were prevented from selling their coins, as it appeared locked on the website. With the depreciation of the coin value and the inaccessibility of funds, the informant and several other similarly defrauded investors realised they had been cheated, and funds totalling Rs.84,34,641/- were misappropriated by the accused. This sequence of events led to the registration of the present crime. 6. The learned Counsel appearing on behalf of the applicant, asserting the applicant’s innocence, contends that he has been falsely implicated in the crime. It is submitted Page No. 5 of 10 ____________________________________________ 27 November 2025 Chitra Sonawane. 5-BA-4640-2024.doc that there is no specific role attributed to the applicant in the present crime. The applicant has never held any managerial, ownership, directorship, or administrative position in the alleged company and is an individual working in his own capacity. The applicant has not received or retained any funds and is not a beneficiary of any funds. The learned Counsel argues that the applicant was not present at the meeting with the informant and did not induce him to invest any funds. The amount paid by investors to acquire Buxcoin was assessed, and Buxcoin was subsequently transferred into their respective e-wallets. The fluctuations in the entire cryptocurrency market are determined by supply and demand and are subject to market risks. The FIR appears to be merely a retaliatory action, as the informant did not receive the expected returns. The learned Counsel further submits that the applicant has been languishing in jail since 6 January 2024. The investigation has concluded, and no purpose would be served by keeping him in custody. 7. The learned Additional Public Prosecutor representing the respondent/ State, opposes the applicant’s request for bail. He argues that the officials of Bitsolives, including the Page No. 6 of 10 ____________________________________________ 27 November 2025 Chitra Sonawane. 5-BA-4640-2024.doc applicant and accused Nos.1 and 5, in connivance with the officials of Bull Infotech, accused Nos.3 and 4, engaged in a pattern of fraudulent misrepresentation regarding their investment schemes. They repeatedly induced the public to part with substantial sums of money under the false pretence of lucrative returns, only to subsequently abandon their platforms and misappropriate the investor funds. The learned APP further highlights that the applicant organised seminars in Mahableshwar, where he made assurances of high returns on investments in cryptocurrency. At these seminars, attended by numerous victims, the applicant portrayed himself as the founder of the company, enticing individuals to invest and explaining the purported workings of the investment schemes. It is specifically emphasised that, in collusion with the co-accused, the applicant facilitated the investments by introducing accused No.1 through videoconference, urging investors to hand over cash to various intermediaries to avoid remittance fees, and subsequently having their accounts set up on the company’s website. The learned APP submits that the offence is of a grave and serious nature. He points out that the applicant is a flight risk and expresses concerns that, if bail is granted, Page No. 7 of 10 ____________________________________________ 27 November 2025 Chitra Sonawane. 5-BA-4640-2024.doc the applicant may abscond, tamper with the prosecution’s evidence, or exert influence over witnesses. 8. This Court has given anxious consideration to the rival contentions and perused the records. The gravamen of the prosecution’s indictment is that the accused persons, acting in concert pursuant to a premeditated conspiracy, continuously induced the informant and numerous other investors to invest in BUXCOIN and related schemes through false promises and material misrepresentations. They failed to deliver the assured returns, subsequently shuttered multiple platforms, websites, and investment plans, thereby wrongfully causing substantial financial losses to the investors. 9. Upon a perusal of the records, it appears that the applicant, along with accused No.1, was actively involved in the promotion of the investment scheme. The panchanama dated 27 February 2024 indicates that the applicant, along with the co-accused, created digital content on social media platforms, claiming to be the marketing head of the company. The statement of Yogesh Phadtare indicates that the applicant conducted a seminar in Mahableshwar, Page No. 8 of 10 ____________________________________________ 27 November 2025 Chitra Sonawane. 5-BA-4640-2024.doc wherein, by promising lucrative returns, he enticed individuals to invest in Buxcoin. He also states that the applicant instructed him and other investors to transfer their investment funds to various individuals and entities, and that the applicant facilitated the creation of logins on the website. The Call Detail Records further substantiate the fact that the applicant maintained consistent communication with the co-accused during the relevant period. Furthermore, it is undisputed that the applicant is involved in the cryptocurrency business, which remains unregulated and lacks any licensing or authorisation from the Reserve Bank of India or the Securities and Exchange Board of India. Additionally, the applicant, in his bail application, explicitly acknowledges his participation in the promotion of the Buxcoin scheme. The total amount of the misappropriated funds has exceeded Rs.99,75,361/-. There is sufficient material on record to demonstrate the applicant’s active and direct involvement in the commission of the crime. 10. In view of the foregoing, and considering the gravity and seriousness of the offence, which has significant and far- reaching economic consequences, this Court is not inclined Page No. 9 of 10 ____________________________________________ 27 November 2025 Chitra Sonawane. 5-BA-4640-2024.doc to grant bail to the applicant. As a result, the application stands rejected. [R. N. Laddha, J.] Page No. 10 of 10 ____________________________________________ 27 November 2025