Ongoing investigation into a large-scale fake / fictitious crypto currency-based Ponzi / Multi-Level Marketing (MLM) scam
FinTech BizNews Service
Mumbai, 14 December 2025: Directorate of Enforcement (ED), Shimla has conducted search operations at 08 premises located in Himachal Pradesh and Punjab on 13.12.2025 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with an ongoing investigation into a large-scale fake / fictitious crypto currency-based Ponzi / Multi-Level Marketing (MLM) scam which duped lakhs of investors belonging to the states Himachal Pradesh and Punjab to the tune of Rs. 2300 Crore (approx.), as per a press release issued by the Directorate of Enforcement (ED) today.
ED initiated investigation on the basis of multiple FIRs registered by various Police Stations located in the states of Himachal Pradesh and Punjab against Subhash Sharma, the mastermind of the scam (Subhash Sharma has fled the country in 2023) and other associated persons for offences under various sections of IPC, 1860 the Chit Funds Act, 1982, the Banning of Unregulated Deposit Schemes Act, 2019 and allied laws. ED investigation revealed that the accused persons allegedly floated and operated fraudulent crypto currency-based MLM / ponzi schemes through various platforms such as Korvio, Voscrow, DGT, Hypenext and A-Global, wherein gullible investors were lured with false promises of extraordinary returns. These schemes were, in reality, unregulated, self-created platforms, operated in the nature of a Ponzi scheme, where funds from new investors were used to pay earlier investors.
Further, search operations conducted by ED have revealed that:
A. The accused persons created multiple fake crypto platforms, manipulated the fake / fictitious token prices, and periodically shut down and rebranded the platforms to conceal the fraud.
B. Cash-based collections through well-known builders (who were also covered during the search operations), shell entities and personal bank accounts of the accused and their relatives were used to launder the Proceeds of Crime (PoC).
C. Several individuals who were acting as commission agents in the ponzi scheme earned crores of rupees as commission by luring gullible new investors in the ponzi scheme.
D. Foreign travel incentives and promotional events were used to entice new investors and expand the ponzi scheme.
E. Despite freezing orders issued on 04-11-2023 by the competent authority (on the basis of investigation by the state police), which had been duly communicated to the Secretary of Finance, the Hon’ble Court and the revenue authorities of the Punjab Government, 15 plots of land located in Zirakpur, Punjab were sold by one of the arrested accused (arrested by Himachal Pradesh Police in 2025), namely Vijay Juneja in blatant contravention of law.
The search operations conducted by ED have resulted in the freezing of 03 lockers and bank balances / fixed deposits totalling to Rs. 1.2 Crore (approx.). Further, various incriminating documents relating to investment made in numerous immovable properties including benami properties which were acquired by the accused individuals by utilizing PoC generated through the ponzi scheme, investor databases, commission structures along with digital devices have been seized which indicate large-scale generation and laundering of PoC. Further investigation is under progress
