Indian authorities have launched a major crackdown on an alleged crypto Ponzi scheme that reportedly inflicted losses of approximately $254 million on investors.
The case highlights a growing global issue. As crypto hacks surge in 2025, scams are escalating in parallel. Sophisticated bad actors are exploiting digital asset holders through advanced and targeted fraud tactics.
Indian Authorities Uncover Multi-Platform Crypto Ponzi Scheme
India’s Directorate of Enforcement (ED) stated that it conducted search operations across eight locations in the northern states of Himachal Pradesh and Punjab on December 13, under the Prevention of Money Laundering Act (PMLA). The probe relates to what officials describe as a large-scale fake cryptocurrency-based Ponzi and multi-level marketing (MLM) scheme that allegedly defrauded hundreds of thousands of investors.
According to the ED, investors lost around Rs. 2,300 crore. This is equivalent to roughly $254 million at current exchange rates. The scheme was allegedly masterminded by Subhash Sharma, who fled India in 2023.
“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 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 law,” the press release read.
Investigators allege that Sharma and associated individuals floated and operated their schemes through multiple platforms. These include Korvio, Voscrow, DGT, Hypenext, and A-Global. These platforms are described as unregulated, self-created systems that functioned as classic Ponzi schemes.
“Gullible investors were lured with false promises of extraordinary returns,” the authorities stated.
The ED also revealed that the accused persons manipulated fictitious token prices. From time to time, they created, shut down, and rebranded platforms to conceal the fraud.
Authorities claim the proceeds of crime were laundered through cash-based collections, shell entities, and personal bank accounts belonging to the accused and their relatives.
The press release suggested that several individuals acted as commission agents, earning significant sums for bringing new participants into the scheme. The network is also accused of using foreign travel incentives and promotional events to accelerate investor recruitment and expand the operation.
“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 ED said.
Following the searches, the ED confirmed that it froze three lockers, bank balances, and fixed deposits totaling approximately Rs. 1.2 crore (around $132,000).
“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.”
Authorities also affirmed that the investigation remains ongoing.
Global Crypto Scam Epidemic Rises
The crackdown in India comes amid a global rise in cryptocurrency fraud. Last month, BeInCrypto reported that scammers in Australia were forging cybercrime reports and impersonating law enforcement to steal victims’ assets.
Bad actors are also becoming more strategic in their timing, increasingly launching schemes during holiday periods when online shopping and digital transactions surge.
Notably, this trend is not a new phenomenon. The FBI’s 2024 Internet Crime report logged over 150,000 cryptocurrency-related complaints.
Losses totaled $9.3 billion, up 66% from 2023. Investment scams caused $5.8 billion in damages. Furthermore, according to TRM Labs, crypto-related scams have drained at least $53 billion worldwide since 2023.
Regulators worldwide are stepping up enforcement. India’s action reflects a broader movement to prosecute scammers and recover funds. Yet, challenges remain. As crypto grows more popular, the race between scammers and those fighting fraud continues.
