Crypto Scam: Investors Duped Of Rs 2,300 Crore In Punjab, Himachal — All You Need To Know

The Enforcement Directorate carried out search operations at eight locations across Himachal Pradesh and Punjab on Dec. 13 as part of an investigation into an alleged cryptocurrency-linked Ponzi and multi-level marketing scam that is believed to have duped investors of nearly Rs 2,300 crore.

The searches were conducted under the Prevention of Money Laundering Act after multiple FIRs were filed in the two states against the prime accused, Subhash Sharma. He is said to have left the country in 2023, along with several associates.

According to the ED, the investigation found that the accused launched and operated a series of fraudulent cryptocurrency-linked MLM and Ponzi schemes through platforms, including Korvio, Voscrow, DGT, Hypenext and A-Global. Unsuspecting investors were drawn in with promises of exceptionally high returns. In reality, these were unregulated, self-created platforms that functioned like classic Ponzi schemes, with money from new investors being used to make payouts to earlier participants.

"ED investigation revealed that the accused persons allegedly floated and operated fraudulent cryptocurrency-based MLM /ponzi schemes through various platforms such as Korvio, Voscrow, DGT, Hypenext and A-Global, wherein gullible investors were lured with false promises of extraordinary returns. These schemes were, in reality, unregulated, self-created platforms, operated in the nature of a Ponzi scheme, where funds from new investors were used to pay earlier investors,” the central probe agency said in a press release dated Dec. 14.

Search operations revealed that the accused allegedly created multiple fake crypto platforms and issued fictitious digital tokens with no real value. Token prices were manipulated internally, allowing operators to show artificial gains to investors.

Investigators also found that cash-based collections routed through well-known real estate developers, shell entities, and the personal bank accounts of the accused and their relatives were used to launder the proceeds of crime.

The probe indicated that several individuals acting as commission agents earned crores of rupees by recruiting unsuspecting investors into the scheme. Foreign travel incentives and promotional events were also employed to attract new participants and rapidly expand the Ponzi network.

Despite freezing orders being issued in November 2023, investigators found that one of the accused had illegally sold 15 plots in Zirakpur, located in Punjab’s Mohali district, in violation of the law.

The searches resulted in the freezing of three lockers and bank deposits worth around Rs 1.2 crore. Officials also seized incriminating documents linked to investments in several immovable properties, including suspected benami assets allegedly acquired using proceeds generated through the Ponzi scheme. Investor databases, commission structures and digital devices were also taken into custody, with further investigation currently underway.