Indian Authorities Crack Down on $254 Million Crypto Ponzi Scheme
Indian authorities have launched a significant crackdown on an alleged crypto Ponzi scheme that reportedly inflicted losses of roughly $254 million on buyers.
The case highlights a rising world situation. As crypto hacks surge in 2025, scams are escalating in parallel. Sophisticated dangerous actors are exploiting digital asset holders by superior and focused fraud techniques.
Indian Authorities Uncover Multi-Platform Crypto Ponzi Scheme
India’s Directorate of Enforcement (ED) acknowledged that it carried out search operations throughout eight places within the northern states of Himachal Pradesh and Punjab on December 13, underneath the Prevention of Money Laundering Act (PMLA). The probe pertains to what officers describe as a large-scale pretend cryptocurrency-based Ponzi and multi-level advertising (MLM) scheme that allegedly defrauded tons of of hundreds of buyers.
According to the ED, buyers misplaced round Rs. 2,300 crore. This is equal to roughly $254 million at present trade charges. The scheme was allegedly masterminded by Subhash Sharma, who fled India in 2023.
“ED initiated investigation on the idea of a number of FIRs registered by varied Police Stations situated within the states of Himachal Pradesh and Punjab in opposition to Subhash Sharma, the mastermind of the rip-off and different related individuals for offences underneath varied sections of IPC, 1860 the Chit Funds Act, 1982, the Banning of Unregulated Deposit Schemes Act, 2019 and allied legislation,” the press release learn.
Investigators allege that Sharma and related people floated and operated their schemes by multiple platforms. These embody Korvio, Voscrow, DGT, Hypenext, and A-Global. These platforms are described as unregulated, self-created programs that functioned as classic Ponzi schemes.
“Gullible buyers had been lured with false guarantees of extraordinary returns,” the authorities acknowledged.
The ED additionally revealed that the accused individuals manipulated fictitious token costs. From time to time, they created, shut down, and rebranded platforms to hide the fraud.
Authorities declare the proceeds of crime had been laundered by cash-based collections, shell entities, and private financial institution accounts belonging to the accused and their family.
The press launch steered that a number of people acted as fee brokers, incomes vital sums for bringing new members into the scheme. The community can be accused of utilizing overseas journey incentives and promotional occasions to speed up investor recruitment and develop the operation.
“Despite freezing orders issued on 04-11-2023 by the competent authority (on the idea of investigation by the state police), which had been duly communicated to the Secretary of Finance, the Hon’ble Court and the income authorities of the Punjab Government, 15 plots of land situated in Zirakpur, Punjab had been bought by one of many arrested accused (arrested by Himachal Pradesh Police in 2025), specifically Vijay Juneja in blatant contravention of legislation,” the ED mentioned.
Following the searches, the ED confirmed that it froze three lockers, financial institution balances, and stuck deposits totaling roughly Rs. 1.2 crore (round $132,000).
“Further, varied incriminating paperwork regarding funding made in quite a few immovable properties together with benami properties which had been acquired by the accused people by using PoC generated by the ponzi scheme, investor databases, fee constructions together with digital gadgets have been seized which point out large-scale technology and laundering of PoC.”
Authorities additionally affirmed that the investigation stays ongoing.
Global Crypto Scam Epidemic Rises
The crackdown in India comes amid a global rise in cryptocurrency fraud. Last month, BeInCrypto reported that scammers in Australia had been forging cybercrime stories and impersonating legislation enforcement to steal victims’ belongings.
Bad actors are additionally changing into extra strategic of their timing, more and more launching schemes during holiday durations when on-line purchasing and digital transactions surge.
Notably, this pattern will not be a brand new phenomenon. The FBI’s 2024 Internet Crime report logged over 150,000 cryptocurrency-related complaints.
Losses totaled $9.3 billion, up 66% from 2023. Investment scams triggered $5.8 billion in damages. Furthermore, in line with TRM Labs, crypto-related scams have drained a minimum of $53 billion worldwide since 2023.
Regulators worldwide are stepping up enforcement. India’s motion displays a broader motion to prosecute scammers and get better funds. Yet, challenges stay. As crypto grows extra in style, the race between scammers and those fighting fraud continues.
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