The Directorate of Enforcement (ED) today conducted search operations and made an arrest in connection with an alleged ₹500 crore cryptocurrency-based multi-level marketing (MLM) fraud that investigators say affected more than 248,000 investors across India.
According to an official release, the ED’s Shimla Office searched the premises of Vijay Kumar Juneja and Masoom Juneja under the Prevention of Money Laundering Act (PMLA), recovering documents and digital devices that the agency said are relevant to its investigation. The ED also arrested Masoom Juneja under Section 19(1) of the PMLA.
ED alleges ponzi-style crypto scheme defrauded 248,000 Investors
The investigation stems from FIRs filed by the Himachal Pradesh and Punjab Police against Subhash Sharma and several co-accused, including Hem Raj, Sukhdev Thakur, Abhishek Sharma, and Radhika Sharma.
According to the ED, the group launched a cryptocurrency-based MLM scheme in 2018 centered on Korvio Coin (KRO). Investigators allege the accused promised investors high guaranteed returns through seminars and promotional campaigns while manipulating the token’s value and introducing new digital tokens to sustain the operation.
The agency alleges the scheme operated as a Ponzi structure, using funds from new participants to pay returns to earlier investors. Recovered digital records indicate that more than 248,000 users invested through the platform. The ED estimates that transactions exceeded $219 million, with investor losses amounting to approximately ₹500 crore.
Investigators trace funds through offshore platforms and layered transactions
According to the ED, the online platform initially operated domestically before being shifted to foreign-hosted servers on DigitalOcean using domains including korvio.io and voscrow.com. Investigators allege the operators later deleted digital records and domain infrastructure in an attempt to conceal evidence.
The ED further claims the proceeds were layered through multiple bank accounts, shell entities, and intermediaries before a portion was converted into cryptocurrency to obscure the money trail. The agency also stated that Subhash Sharma allegedly fled to Dubai after the scheme came under investigation.
Crypto enforcement intensifies across India
The ED’s latest action comes as Indian authorities pursue multiple investigations involving cryptocurrency-related financial crimes. In a separate case, Gujarat Police’s Cyber Centre of Excellence recently arrested two more suspects, bringing the total arrests to 12 in an investigation into an alleged crypto network linked to terror financing, international narcotics trafficking, and dark web financial operations.
According to investigators, blockchain analysis traced a Binance wallet allegedly created using another person’s KYC credentials without authorization. Police allege the wallet received 5,000 USDT through layered transactions originating from wallets linked to sanctioned entities before the funds were converted and moved through the financial system. The accused have been charged under provisions of the Bharatiya Nyaya Sanhita and the Information Technology Act covering organized crime, criminal conspiracy, identity-related cyber offences, and facilitating illegal financial channels.
Property purchases under scrutiny
The ED alleges that funds collected from investors were routed to Vijay Kumar Juneja and Masoom Juneja, who then used the money to acquire immovable properties. According to investigators, several real estate transactions were registered at values significantly below the actual consideration paid, allowing a substantial portion of the payments to be made in cash. The agency alleges this arrangement helped launder proceeds generated from the alleged fraud.
Statements recorded under Section 50 of the PMLA indicate that cash was allegedly delivered to Vijay Kumar Juneja and Masoom Juneja on behalf of Subhash Sharma and his associates.
The ED also alleges that the two were nominees on several employee-held bank accounts that investigators believe were used to layer and conceal proceeds of crime. The agency said Masoom Juneja’s arrest is intended to investigate further the total amount of alleged proceeds generated and laundered through the cryptocurrency scheme.
No response from the accused was included in the ED’s press release, and the allegations remain under investigation.
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