Yeliz Akmaca 
Indian authorities have launched a major enforcement action against a large-scale crypto Ponzi scheme that caused losses of roughly $254 million. The investigation marks one of the most significant crypto fraud cases in the country to date. Officials confirmed that assets were frozen while the alleged mastermind fled India.
The case emerges as crypto scams accelerate globally in 2025. Moreover, rising hack incidents and advanced social engineering tactics continue to pressure investor confidence across digital asset markets.
Why it matters?
This case highlights how unregulated crypto platforms can scale rapidly and cause systemic investor harm. It also signals tighter enforcement and rising compliance pressure across the global crypto market.
Enforcement Directorate Expands Crypto Fraud Investigation
India’s Enforcement Directorate initiated coordinated search operations on December 13 under the Prevention of Money Laundering Act. Authorities carried out raids at eight locations across Himachal Pradesh and Punjab. The probe focuses on what officials describe as a fake crypto-based Ponzi and multi-level marketing structure.
According to investigators, total investor losses reached nearly Rs. 2,300 crore. That amount equals approximately $254 million at current exchange rates. Officials identified Subhash Sharma as the primary architect of the scheme. Sharma reportedly left India in 2023, complicating recovery efforts.
Fake Crypto Platforms and Token Price Manipulation
The Enforcement Directorate stated that the fraud operated through multiple self-created platforms. These included Korvio, Voscrow, DGT, Hypenext, and A-Global. Each platform allegedly functioned without regulatory oversight and followed a classic Ponzi structure.
Organizers promised unusually high and consistent returns to attract investors. However, token prices were artificially manipulated rather than driven by market demand. Platforms were periodically shut down, rebranded, and relaunched to evade detection and prolong the scheme.
Key characteristics of the alleged crypto Ponzi network included:
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Guaranteed high-yield investment claims
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Artificial token pricing mechanisms
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Repeated platform shutdowns and rebranding
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Commission-based recruitment incentives
Money Laundering Channels and Legal Violations
Investigators revealed that proceeds from the scheme were laundered through cash collections, shell entities, and personal bank accounts. In addition, several individuals acted as commission agents, earning substantial payouts for onboarding new participants. Promotional events and foreign travel rewards further accelerated expansion.
Authorities froze bank balances, lockers, and fixed deposits totaling around Rs. 1.2 crore, or roughly $132,000. However, officials also uncovered serious legal violations. Despite prior freezing orders, 15 land plots in Zirakpur, Punjab were sold unlawfully. The transaction allegedly involved Vijay Juneja, who was later arrested.
Global Crypto Markets Face Rising Scam Pressure
This enforcement action underscores a broader trend affecting the global crypto market. Crypto scams are becoming more organized, multi-platform, and psychologically targeted. As a result, regulators worldwide are increasing scrutiny and tightening compliance standards.
Market analysts suggest that cases like this may shift investor behavior toward lower risk exposure. At the same time, regulatory clarity could accelerate as authorities attempt to restore trust in digital asset ecosystems.
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