ED Uncovers Massive Rs 2,300 Crore Cryptocurrency Ponzi Scheme Across Himachal Pradesh and Punjab

The Enforcement Directorate executed coordinated search operations across eight locations in Himachal Pradesh and Punjab on Saturday, uncovering a massive cryptocurrency-based Ponzi and Multi-Level Marketing (MLM) scheme that reportedly defrauded investors of approximately Rs 2,300 crore.

Operating under the Prevention of Money Laundering Act (PMLA), these searches were prompted by multiple FIRs registered against the alleged mastermind, Subhash Sharma, who fled India in 2023, and his accomplices. The accused face numerous charges under the Indian Penal Code, the Chit Funds Act, and the Banning of Unregulated Deposit Schemes Act.

Investigators discovered that the group operated fraudulent crypto-MLM schemes through several self-created, unregulated platforms including Korvio, Voscrow, DGT, Hypenext and A-Global. These schemes enticed investors with promises of exceptional returns while operating as classic Ponzi structures, using new investor funds to pay earlier participants.

The search operations revealed systematic manipulation of fictitious token prices, strategic platform shutdowns and rebranding to avoid detection, and elaborate money laundering through cash collections channeled via builders, shell entities, and personal accounts belonging to the accused and their family members. Commission agents reportedly earned substantial sums by recruiting new investors, incentivized by foreign travel opportunities and promotional events.

Despite freezing orders issued in November 2023, investigators discovered that 15 plots in Zirakpur in Punjab's Mohali district were illegally sold by one of the accused, violating legal restrictions. The operation resulted in the freezing of three lockers and bank deposits worth approximately Rs 1.2 crore, along with seizure of incriminating documents, investor databases, and digital devices indicating widespread money laundering and undisclosed property acquisitions. The investigation continues.