Indian authorities have launched a major raid on an alleged crypto-Ponzi scheme that has reportedly caused investors losses of around 254 million dollars.
The case highlights a growing global problem. As crypto hacks increase in 2025, so do scams rapidly. A skilled group of criminals is exploiting digital assets with advanced and targeted scam tactics.
Indian authorities expose a multi-platform crypto Ponzi scheme
India's Directorate of Enforcement (ED) reported conducting raids in eight different locations in Himachal Pradesh and Punjab on December 13 under the Prevention of Money Laundering Act (PMLA). The investigation is related to a widespread fictitious cryptocurrency-based Ponzi and multi-level marketing scheme that allegedly defrauded hundreds of thousands of investors.
According to ED, investors lost about 2,300 million rupees. This corresponds to about 254 million dollars at prevailing exchange rates. Subhash Sharma, who fled India in 2023, is considered the main perpetrator of the system.
"ED initiated the investigation based on several FIR reports registered by various police stations in Himachal Pradesh and Punjab concerning Subhash Sharma – the main perpetrator of the scam – and other involved individuals, regarding offenses under various laws, including IPC 1860, Chit Funds Act 1982, Banning of Unregulated Deposit Schemes Act 2019, and other laws," the press release stated.
Researchers suspect that Sharma and his associates operated the system through various platforms, such as Korvio, Voscrow, DGT, Hypenext, and A-Global. These platforms have been unregulated, self-created systems that operate like classic Ponzi schemes.
"Gullible investors were lured by false promises of exceptional returns," officials stated.
ED also revealed that the suspects manipulated the prices of fictitious tokens. They created, closed, and rebranded platforms from time to time to cover up the scam.
According to authorities, criminal proceeds were laundered through cash collections, front companies, and the personal bank accounts of suspects and their relatives.
According to a press release, several individuals acted as commission agents and earned significant sums by bringing new participants into the system. The network is also reported to have used overseas travel incentives and promotional events to accelerate investor acquisition and business growth.
"Despite freeze orders being issued on 04-11-2023 by the competent authority (as part of the state police investigation) and the matter being duly informed to the Ministry of Finance, the honorable court, and the tax authorities of Punjab, 15 land parcels in Zirakpur, Punjab, were sold by one of the arrested suspects (who was arrested by Himachal Pradesh police in 2025), namely Vijay Juneja, in blatant violation of the law," ED said.
After the raids, ED confirmed that it had frozen three safes, bank balances, and term deposits worth approximately 1.2 million rupees or about 132,000 dollars.
"Additionally, several incriminating documents related to investments in numerous properties, including benami assets acquired using proceeds from Ponzi scams, investor registers, commission structures, and digital devices showing widespread acquisition of criminal proceeds and money laundering have been seized."
Authorities emphasized that the investigation is ongoing.
The epidemic of global cryptocurrency scams is growing.
The Indian raid occurs amid the global rise of cryptocurrency scams. Last month, BeInCrypto reported that scammers in Australia forged cybercrime notices and impersonated police officials to steal victims' assets.
Criminals continue to operate more strategically in their timing, launching fraudulent schemes during holiday seasons when online shopping and digital payments surge.
Notably, this phenomenon is not new. The FBI's 2024 Internet Crime report recorded over 150,000 complaints related to cryptocurrencies.
Losses have risen to a total of 9.3 billion dollars, which is 66% more than in 2023. Investment scams caused damages of 5.8 billion dollars. Additionally, according to TRM Labs, crypto-related scams have taken at least 53 billion dollars globally since 2023.
Regulatory authorities around the world are tightening their oversight measures. India's actions reflect a broader effort to hold scammers accountable and recover funds. However, challenges remain. As the popularity of cryptocurrencies increases, the race between scammers and fraud prevention measures continues.