Indian authorities have recently made significant progress in uncovering and apprehending individuals involved in a massive cryptocurrency fraud. The scale of this fraud is staggering, with the total amount involved reaching an astonishing $300 million (2500 crore Indian rupees).
The investigation into this fraudulent scheme began in late September, when it was revealed that thousands of individuals, including government officials and police personnel, had fallen victim to the scam. What sets this fraud apart is the shocking involvement of police personnel, with more than 1,000 officers entangled in the scheme, some as unwitting victims and others as active participants.
The Scheme and its Operation
The origins of this scam can be traced back to 2018, when victims were enticed by investment plans related to a local cryptocurrency called Korvio Coin (KRO coins). As the scheme unfolded, multiple other cryptocurrencies were introduced through fake websites, and there was even an instance of a “rug pull” where the project was abandoned after individuals had invested in the token.
According to reports, the fraudulent operation used various tactics to deceive its victims, including promises of high returns and the involvement of police officials as promoters. This combination of elements made it appear legitimate and increased the trust of potential investors.
The Investigation and Arrests
Over the past two years, there have been 56 complaints filed in connection with this scam. This led to a comprehensive investigation conducted by multiple agencies, including the Enforcement Directorate and regional police teams, overseen by a Special Investigation Team (SIT).
The breakthrough in the case came when independent MLA Hoshyar Singh brought the fraud to the attention of Himachal’s parliament. At that time, the value of the fraud was estimated to be around $20 million. Subsequent raids conducted by the authorities at various locations yielded approximately 250,000 identification cards linked to the suspects.
So far, 18 arrests have been made in connection with the scam. However, the alleged mastermind, Subhash Sharma, is still at large. The Enforcement Directorate is also investigating the potential involvement of five women who are suspected to have acted as agents or promoters for Sharma.
It is important to highlight that the victims of this elaborate Ponzi scheme come from diverse backgrounds and collectively invested over ₹2,500 crore. This unfortunate incident highlights the pressing need for robust measures to prevent and address crypto frauds in India.
India is currently facing a surge in elaborate crypto scams, and authorities are grappling with the challenging task of prosecuting the culprits.
