Ponzi

The Directorate of Enforcement (ED), Shimla, has conducted search operations at eight locations across Himachal Pradesh and Punjab in connection with a massive fake cryptocurrency–based Ponzi and multi-level marketing (MLM) scam that allegedly defrauded investors of nearly ₹2,300 crore, according to an <a href="https://enforcementdirectorate.gov.in/sites/default/files/latestnews/Press%20release_Search-Fake%20Cryptocurrency%20Scam_14.12.2025%202.pdf" target="_blank" rel="noopener noreferrer nofollow">official press</a> release dated December 14, 2025.
The searches were carried out on December 13 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, following multiple FIRs registered by police authorities in both states.&nbsp;
The case’s name is Subhash Sharma, identified as the mastermind of the scheme, along with several associates. Sharma is believed to have fled <a href="https://hash.media/hashdesk/indias-finance-minister-signals-shift-toward-stablecoin-engagement/" target="_blank" rel="noopener noreferrer nofollow">India</a> in 2023. The FIRs were filed under sections of the Indian Penal Code, the Chit Funds Act, 1982, and the Banning of Unregulated Deposit Schemes Act, 2019.
According to the ED, the accused allegedly floated and operated fraudulent crypto-based platforms, including Korvio, Voscrow, DGT, Hypenext, and A-Global. Investors were lured with promises of extraordinarily high returns, while the schemes functioned as classic Ponzi operations, using funds from new investors to pay earlier participants.
Investigators found that the accused repeatedly created fake crypto tokens, manipulated token prices, shut down platforms, and relaunched them under new names to evade detection.&nbsp;
Proceeds of crime were allegedly laundered through cash collections routed via builders, shell entities, and personal bank accounts of the accused and their relatives.&nbsp;
Several commission agents reportedly earned crores of rupees by recruiting new investors, while foreign travel incentives and promotional events were used to expand the scam.
The ED also flagged a serious violation involving the illegal sale of 15 plots of land in Zirakpur, Punjab, despite freezing orders issued in November 2023. The sale was allegedly carried out by one of the accused, Vijay Juneja, who was later arrested by the Himachal Pradesh Police in 2025.
The searches led to the freezing of three lockers and bank balances and fixed deposits worth about ₹1.2 crore, along with the seizure of incriminating documents, digital devices, investor databases, and records pointing to large-scale laundering of illicit funds. Further investigation is ongoing.
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ED Conducts Searches in Massive ₹2,300 Cr Crypto Ponzi Case

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