India’s financial crime agency has intensified a sweeping crackdown on an alleged cryptocurrency Ponzi empire, targeting a sprawling fake crypto MLM network accused of draining billions of rupees from investors across multiple northern states.
India’s Enforcement Directorate Targets Alleged Crypto Ponzi Network
India’s federal money laundering watchdog launched coordinated searches tied to an alleged cryptocurrency Ponzi operation in northern India. The Directorate of Enforcement (ED), a financial crime agency under the Ministry of Finance, conducted search operations on Dec. 14 focused on a suspected fake crypto MLM network spanning multiple states.
The Directorate of Enforcement carried out searches at eight premises across Himachal Pradesh and Punjab under the Prevention of Money Laundering Act, 2002, as part of an ongoing probe into an alleged fraud that authorities estimate caused losses of approximately Rs. 2,300 crore (about $275 million), affecting hundreds of thousands of investors. The agency stated:
ED investigation revealed that the accused persons allegedly floated and operated fraudulent crypto currency-based MLM / ponzi schemes through various platforms … 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,” the authority noted.
The investigation originated from multiple first information reports (FIRs) filed by police stations in both states against Subhash Sharma, identified by investigators as the mastermind who left the country in 2023, along with several associates. Enforcement officials detailed that the accused allegedly operated fraudulent cryptocurrency-based multi-level marketing platforms, including Korvio, Voscrow, DGT, Hypenext, and A-Global, which promised unusually high returns while functioning as unregulated, self-created systems reliant on new investor funds to pay earlier participants.
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Investigative findings outlined a complex structure designed to obscure illicit activity and launder proceeds of crime. The agency described:
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.
According to the ED, cash collections were routed through shell entities, personal bank accounts, and certain real estate intermediaries to conceal fund flows, while commission agents allegedly earned substantial sums for recruiting new participants. Authorities also noted the use of foreign travel incentives and promotional events to expand the scheme’s reach.
Despite freezing orders issued in November 2023, investigators reported that 15 plots of land in Zirakpur, Punjab, were sold in violation of those directives by an accused individual later arrested in 2025. The searches led to the freezing of three lockers, bank balances, and fixed deposits totaling about Rs. 1.2 crore, along with the seizure of documents, digital devices, investor databases, and records related to immovable and benami properties. The agency said various incriminating documents, property-related records and digital devices were seized during the operations. Officials said the investigation is ongoing as financial scrutiny continues.
FAQ ⏰
- What triggered the ED’s crypto Ponzi investigation in northern India? Multiple police FIRs alleged a massive fake cryptocurrency MLM scheme that defrauded investors of about Rs. 2,300 crore.
- Which fake crypto platforms are named in the ED probe? Investigators cited Korvio, Voscrow, DGT, Hypenext, and A-Global as part of the alleged Ponzi network.
- Who is accused of masterminding the crypto MLM Ponzi scheme? Authorities identified Subhash Sharma as the alleged mastermind who left India in 2023.
- What assets were seized during the ED search operations? The ED froze lockers, bank balances, fixed deposits, and seized documents, digital devices, and property records.
Author: Kevin Helms
Source: Bitcoin
Reviewed By: Editorial Team
