Shimla: In yet another reminder of how gullible investors in Himachal Pradesh and Punjab continue to be trapped by flashy promises of quick riches, the Enforcement Directorate (ED), Shimla, has unearthed shocking details of a massive fake cryptocurrency-based Ponzi and Multi-Level Marketing (MLM) scam that allegedly siphoned off nearly Rs 2,300 crore.
The ED on December 13 carried out search operations at eight locations across Himachal Pradesh and Punjab under the Prevention of Money Laundering Act (PMLA), 2002.
The action is part of an ongoing probe into a sprawling fraud that duped lakhs of small investors, many of them first-time savers, who were lured by promises of extraordinary returns through so-called crypto platforms.
The investigation was initiated on the basis of multiple FIRs registered by police stations in both states against Subhash Sharma, identified as the mastermind of the scam, and his associates.
Sharma, according to the ED, fled the country in 2023. The accused face charges under various sections of the IPC, the Chit Funds Act, the Banning of Unregulated Deposit Schemes Act and other allied laws.
ED officials say the accused floated and operated a series of fraudulent crypto-based MLM and Ponzi schemes through platforms such as Korvio, Voscrow, DGT, Hypenext and A-Global.
These platforms were allegedly self-created, unregulated and fictitious, functioning purely as Ponzi schemes where money collected from new investors was used to pay earlier ones, creating a false impression of profitability.
The probe has revealed a well-oiled machinery of deception. Investigators found that the accused frequently manipulated fake token prices, shut down platforms and rebranded them under new names to evade detection and keep investors trapped.
Cash collections routed through shell entities, well-known builders and personal bank accounts of the accused and their relatives were allegedly used to launder the proceeds of crime.
Several individuals acting as commission agents earned crores of rupees by aggressively recruiting new investors, while foreign travel incentives and flashy promotional events were used to expand the scheme and project an image of legitimacy. In a particularly brazen violation of law, the ED found that 15 plots of land in Zirakpur, Punjab, were sold by one of the accused, Vijay Juneja, despite freezing orders issued in November 2023 and communicated to the Punjab government, courts and revenue authorities.
During the searches, the ED froze three lockers and bank balances and fixed deposits worth around Rs 1.2 crore. Officials also seized incriminating documents related to investments in multiple immovable properties, including suspected benami assets, investor databases, commission structures and digital devices, pointing to large-scale generation and laundering of illicit funds.
As the investigation continues, a pressing question haunts thousands of affected families across Himachal Pradesh and Punjab. Will innocent investors, many of whom invested their life savings in hope of financial security, ever get their money back.
With the prime accused absconding abroad and assets scattered and concealed, the road to recovery appears long and uncertain, even as enforcement agencies tighten the noose around the remaining players in the scam.
How such rackets continue to Flourish in India?
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