ED Carries Out Searches in Cryptocurrency-Based Ponzi/MLM Scam Probe

December 14, 2025

Shimla: The Enforcement Directorate (ED), Shimla, has conducted search operations at eight locations across Himachal Pradesh and Punjab under the Prevention of Money Laundering Act (PMLA) in connection with a massive fake cryptocurrency-based Ponzi and Multi-Level Marketing (MLM) scam, officials said on Sunday. The alleged scam is estimated to have duped lakhs of investors of nearly ₹2,300 crore. The searches were carried out on Saturday.

Scam Mastermind, Modus Operandi

The ED initiated its probe based on multiple FIRs registered by police in Himachal Pradesh and Punjab against Subhash Sharma, the alleged kingpin who reportedly fled the country in 2023, along with his associates. The FIRs were filed under various provisions of the Indian Penal Code, the Chit Funds Act, the Banning of Unregulated Deposit Schemes Act, and other related laws.
Investigators said the accused floated and operated unregulated cryptocurrency-based platforms such as Korvio, Voscrow, DGT, Hypenext and A-Global, promising exceptionally high returns to lure investors. These self-created platforms allegedly functioned purely as Ponzi schemes, using funds from new investors to pay earlier ones.

Money Laundering, Fake Platforms Exposed

According to the ED, the accused repeatedly shut down and rebranded fake crypto platforms, manipulated fictitious token prices and created multiple shell entities to conceal the fraud. Proceeds of crime were allegedly laundered through cash collections routed via prominent builders, shell companies, and personal bank accounts of the accused and their relatives. Several commission agents are said to have earned crores by recruiting new investors, while foreign travel incentives and promotional events were used to expand the network.

Assets Frozen, Documents Seized

Despite freezing orders issued in November 2023, the ED said 15 plots of land in Zirakpur, Punjab, were illegally sold by one of the accused, Vijay Juneja, who was arrested by Himachal Pradesh Police in 2025. Following the searches, the agency has frozen three lockers and bank balances and fixed deposits worth around ₹1.2 crore.
The ED also seized incriminating documents related to benami properties, investor databases, commission structures and digital devices, pointing to large-scale generation and laundering of illicit funds. Further investigation is underway.