The Enforcement Directorate (ED) has intensified its crackdown on a massive financial fraud, conducting coordinated raids across two states in connection with a cryptocurrency-based scam estimated to be worth a staggering Rs 2,300 crore.
Widespread Searches and Seizures
Over the last two days, the Shimla wing of the ED executed search operations at a total of eight premises located in Himachal Pradesh and Punjab. These actions were carried out under the stringent Prevention of Money Laundering Act (PMLA), 2002. During the raids, officials seized a trove of incriminating evidence.
The seized materials include documents related to immovable properties, detailed investor records, and commission structures of the alleged scheme. Several digital devices were also confiscated for forensic examination. In a significant financial hit to the accused, the agency froze three bank lockers and fixed deposits amounting to approximately Rs 1.2 crore.
The Elaborate Crypto Ponzi Network
The ED's investigation, initiated based on multiple First Information Reports (FIRs) filed by police in Himachal Pradesh and Punjab, unraveled a complex web of deception. The probe targets the alleged mastermind, Subhash Sharma, who is reported to have fled the country in 2023, along with his associates.
According to the agency, the accused operated fraudulent multi-level marketing (MLM) and ponzi schemes by creating and promoting multiple unregulated, self-styled crypto platforms. These platforms, identified as Corviyo, Cosco, DGT, HyperNet, and A-Global, lured investors with false promises of extraordinarily high returns.
In reality, the scheme functioned as a classic ponzi fraud, where funds collected from new investors were simply used to pay off earlier investors to create a illusion of legitimacy. The ED found that the accused frequently manipulated prices of fictitious tokens, and would periodically shut down platforms only to rebrand them under new names to avoid detection and continue the fraud.
Money Laundering and Illegal Asset Sales
The investigation has shed light on the sophisticated methods used to launder the proceeds of the crime. Cash collected from investors was allegedly routed through a network that included well-known builders, shell entities, and the personal bank accounts of the accused and their relatives. Several builders were also covered during the search operations.
The ED also uncovered that a network of commission agents earned crores of rupees by recruiting unsuspecting new investors into the scheme. To expand their reach, the operators used incentives like foreign travel and promotional events to attract more victims.
In a brazen act of defiance, the probe revealed that 15 land parcels in Zirakpur, Punjab, were illegally sold despite a freezing order issued by the competent authority on November 4, 2023. This order, based on state police investigations, was duly communicated to the Finance Secretary, the competent court, and revenue authorities. The illegal sale was allegedly executed by one of the arrested accused, Vijay Juneja, who was apprehended by the Himachal Pradesh Police in 2025.
The cases against the accused are registered under various sections of the Indian Penal Code, the Chit Funds Act, 1982, and the Banning of Unregulated Deposit Schemes Act, 2019. The latest raids mark a crucial step in the ED's efforts to trace the massive trail of illicit funds and bring the perpetrators to justice.
