Key Highlights
- The Enforcement Directorate (ED) arrested three individuals under the PMLA in connection with an alleged ₹500 crore crypto Ponzi scheme.
- Investigators say the MLM network promoted Korvio Coin (KRO) through platforms including Korvio, DGT, Hypenext, and A-Global, promising guaranteed returns.
- The ED recovered evidence indicating that more than 248,000 investors participated, with transactions exceeding $219 million.
India’s Enforcement Directorate (ED) has arrested three individuals for their alleged involvement in a cryptocurrency investment fraud that authorities say defrauded hundreds of thousands of investors through fake digital asset platforms.
In a press release shared via X, the ED said Milan Garg, Sukhdev Thakur, and Abhishek Sharma were arrested under the Prevention of Money Laundering Act (PMLA) after investigators linked them to an alleged crypto Ponzi scheme that generated proceeds of crime worth approximately ₹500 crore.
The money laundering probe stems from multiple FIRs registered in Himachal Pradesh and Punjab, where investors accused the operators of promising unusually high and guaranteed returns through cryptocurrency investments.
How the alleged scheme worked
Investigators allege the scheme began in 2018, when alleged mastermind Subhash Sharma, who remains absconding, launched a cryptocurrency-based multi-level marketing (MLM) operation alongside several associates.
Authorities say the network operated through platforms including Korvio, DGT, Hypenext, and A-Global, encouraging investors to purchase Korvio Coin (KRO) by promising fixed returns and rapid appreciation in value.
According to the ED, organizers manipulated token prices, introduced new digital assets to keep investors engaged, and used fresh investor deposits to pay earlier participants, allowing the operation to function as a Ponzi scheme.
The investigation further found that the platforms were later migrated to foreign servers hosted by DigitalOcean and operated through domains including korvio.io and voscrow.com. Although operators allegedly deleted digital records to conceal their activities, investigators recovered evidence showing that more than 248,000 users invested through the platforms.
Authorities estimate the network processed transactions worth more than $219 million, while investor losses are estimated at approximately ₹500 crore.
Investigators identify key players
According to the ED, Milan Garg served as the technical architect behind the operation. Investigators allege he developed and managed the cryptocurrency platforms, controlled digital wallets, supervised investor migration between platforms, and coordinated the routing of investor funds through cryptocurrency transactions.
Meanwhile, Sukhdev Thakur and Abhishek Sharma allegedly acted as early promoters of the scheme by organizing investment meetings and convincing members of the public to participate through promises of high returns. Authorities say both men collected investor funds before transferring cash to members of the Juneja family and other alleged conspirators on instructions from Sharma.
The ED also alleges the pair acquired beneficial interests in real estate using proceeds generated from the fraud. Investigators further traced bank accounts and cryptocurrency wallets that were allegedly used to move and conceal investor funds.
ED gets custody to deepen probe
Since all three accused were already in judicial custody in the predicate offence, the ED secured production warrants before formally arresting them under the PMLA. A special court in Shimla has granted the agency 12 days of custodial interrogation, allowing investigators to further examine the flow of funds, identify additional proceeds of crime, and determine the full extent of the alleged laundering network.
Earlier in the investigation, the ED had also arrested Hem Raj and Masoom Juneja, while alleged mastermind Subhash Sharma remains at large.
India steps up crypto enforcement
The arrests come as the Enforcement Directorate expands its scrutiny of cryptocurrency-related financial crimes across India.
Over the past week, the agency has carried out multiple major actions involving digital assets. It is also investigating a ₹303 crore cyber fraud syndicate, tracing stablecoins including USDT, Ethereum, and Solana across international laundering routes that allegedly extended to Dubai.
Earlier this week, the agency attached ₹55.5 crore worth of Mumbai properties linked to the ATC Coin case, alleging that investor funds were diverted through company accounts before being layered into real estate assets.
The recent actions reflect the agency’s broader effort to trace digital asset transactions, dismantle cryptocurrency-enabled money laundering networks, and recover proceeds of crime linked to large-scale investment fraud.
