Key Highlights
- The Directorate of Enforcement (ED) raided eight locations in Himachal Pradesh and Punjab over a crypto Ponzi scam that allegedly duped investors of ₹2,300 crore.
- The scam was allegedly run by an individual named Subhash Sharma, who fled India in 2023, using fake crypto platforms to promise high returns.
- The ED found rebranded fake crypto platforms, manipulated token prices, and laundering via builders, shell firms, and bank accounts
The Directorate of Enforcement (ED), India’s financial crime investigation agency, on December 13, 2025, conducted search operations at eight locations across Himachal Pradesh and Punjab in connection with a massive cryptocurrency-based Ponzi and multi-level marketing (MLM) scam.
According to the ED’s official press release, the scheme was allegedly masterminded by an individual named Subhash Sharma, who fled India in 2023. The scam is estimated to have defrauded investors of approximately ₹2,300 crore (about $253 million).
The investigation ensued based on a series of First Information Reports (FIRs) filed by various police stations in both states against Sharma and his aides. The accused have been charged under different sections of the Indian Penal Code, Chit Funds Act, the Banning of Unregulated Deposit Schemes Act of 2019, and other relevant acts.
How the scam operated
As stated by the ED, such scam operates under a variety of fake cryptocurrency exchanges such as Korvio, Voscrow, DGT, Hypenext, and A-Global. Investors were lured with promises of unusually high returns, while the platforms functioned as Ponzi schemes, using money from new investors to pay earlier participants.
Investigation uncovered that the accused formed and relabeled different crypto scam sites to cover up their scam. It was unearthed that prices for tokens were rigged, and massive cash inflows were channeled through realty developers, shell companies, and bank accounts of the accused persons and their families for money laundering.
Some of these commission agents are alleged to have earned crores of rupees by attracting new investors, and foreign travel opportunities were used to spread this investment scam.
Assets seized and ongoing probe
The investigation also uncovered violations of freezing orders issued in November 2023. Despite these restrictions, 15 plots of land in Zirakpur, Punjab, were sold by Vijay Juneja, one of the accused who was arrested by Himachal Pradesh Police in 2025.
The ED said the sale was carried out in clear violation of the law, even though the freezing orders had been communicated to the finance department, courts, and revenue authorities in Punjab.
As part of the operation, the ED froze three lockers and bank deposits totaling around ₹1.2 crore (about $132k). Officials also seized investor databases, commission structures, digital devices, and documents related to investments in several immovable properties, including benami assets acquired using the proceeds of the scam.
Further investigations are being conducted as law enforcers continue to follow money trails and other people involved in this matter.
Also Read: RBI Deputy Governor: Crypto & Stablecoins are Threat to Monetary Stability
