In India, authorities have launched a large-scale operation against a major crypto Ponzi scheme that allegedly caused approximately $254 million in damages.
This case highlights a growing global issue. As crypto hacks gain momentum in 2025, cases of fraud are increasing at the same pace. Experienced scammers are trapping digital asset owners with advanced and targeted methods.
Detection of Multi-Platform Cryptocurrency Ponzi Scam by Indian Authorities
The Enforcement Directorate (ED) of India announced that it conducted searches at a total of eight different locations in Himachal Pradesh and Punjab on December 13 as part of the Prevention of Money Laundering Act (PMLA). The investigation relates to a fraud described by authorities as a large-scale and fake cryptocurrency-based Ponzi scheme with a multi-level marketing (MLM) model, which allegedly victimized hundreds of thousands of investors.
According to ED, the loss to investors is approximately 2,300 crore rupees, equivalent to about 254 million dollars at the current exchange rate. Subhash Sharma, who is alleged to be the mastermind of this scheme, fled India in 2023.
Investigators noted that multiple FIRs have been filed against Subhash Sharma, the mastermind of this fraud, and other individuals associated with him, in police stations established in various states of India (including Himachal Pradesh and Punjab), under the Indian Penal Code 1860, the Chit Funds Act 1982, the Prohibition of Irregular Deposit Schemes Act 2019, and other relevant laws. For these reasons, ED has initiated an investigation, as stated in the press release.
According to allegations, Sharma and his team operated this organization through different platforms. These platforms, operating under names like Korvio, Voscrow, DGT, Hypenext, and A-Global, are unlicensed and described as classic examples of Ponzi schemes.
Authorities stated, 'Innocent investors were deceived with extraordinary return promises.'
ED also stated that the accused have manipulated fake token prices. They have tried to conceal their fraudulent activities by occasionally transitioning to new platforms or shutting down existing sites and renaming them.
Authorities state that illegal gains are laundered through cash collection methods, shell companies, and the personal bank accounts of criminals and their relatives.
The press release emphasized that numerous individuals worked as brokers and earned significant income as they brought new investors into the scheme. It is also claimed that the organization utilized overseas travel incentives and promotional events for faster growth.
ED stated, 'Despite the freezing orders issued by the competent authorities on 04-11-2023 based on the state police's investigation, which were correctly reported to the Ministry of Finance, the Court, and the Punjab Government, 15 plots located in Zirakpur, Punjab, were sold illegally by Vijay Juneja, one of the defendants arrested by Himachal Pradesh Police in 2025.'
Following the searches, ED announced that three cash boxes, a bank balance, and time deposits totaling approximately 1.2 crore rupees (about 132,000 dollars) have been frozen.
According to the press release: Numerous incriminating documents related to properties acquired with criminal proceeds obtained through the Ponzi scheme belonging to the suspects, hidden real estate, investor databases, commission distribution tables, and various digital devices were seized. All findings indicate that the criminal proceeds have emerged on a large scale and have been laundered.
Authorities also confirmed that the investigation is still ongoing.
Cryptocurrency fraud is on the rise worldwide.
The timing of this operation in India is not coincidental. Cryptocurrency fraud is on the rise globally. Last month, BeInCrypto reported: In Australia, scammers have seized victims' assets by faking cybercrime reports and impersonating law enforcement.
Scammers are making their timing even more strategic. Especially during holiday periods when online shopping and digital transactions increase, they are launching new crime schemes.
It's important to note that this trend is not new. According to the FBI's Internet Crime report for 2024, more than 150,000 complaints related to cryptocurrency were recorded throughout the year.
As losses reached a total of 9.3 billion dollars, there was a significant increase compared to the previous year (66%). Investment-based frauds caused losses of 5.8 billion dollars. Additionally, according to TRM Labs, since 2023, cryptocurrency frauds worldwide have drawn at least 53 billion dollars.
Regulators are tightening their measures globally. This step taken by India reflects a broader effort to prosecute scammers and compensate investor losses. However, challenges persist. As the popularity of cryptocurrency increases, the struggle between those fighting scammers and the scammers themselves continues unabated.