The Directorate of Enforcement (ED), Shimla Zonal Office, has carried out extensive search operations at multiple locations in Himachal Pradesh and Punjab in connection with a massive fake cryptocurrency–based Ponzi and multi-level marketing (MLM) scam involving an estimated ₹2,300 crore.
The searches were conducted on December 13, 2025, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, following multiple FIRs registered by police authorities in both states, according to an official press release issued by the ED.
Multiple FIRs Trigger PMLA Probe
The money laundering investigation stems from several First Information Reports (FIRs) registered under various sections of the Indian Penal Code (IPC), the Chit Funds Act, 1982, and the Banning of Unregulated Deposit Schemes Act (BUDS), 2019.
Based on these FIRs, the ED initiated enforcement case information reports (ECIRs) to probe the alleged laundering of proceeds generated through fraudulent cryptocurrency schemes masquerading as investment opportunities.
Subhash Sharma Named as Mastermind
According to investigators, Subhash Sharma has been identified as the principal mastermind behind the alleged scam. Sharma, along with several associates, is accused of orchestrating a network of fake crypto-based platforms designed to lure investors with promises of exceptionally high and assured returns.
ED officials believe that Sharma fled India in 2023, soon after multiple complaints began surfacing against the operations. Efforts are currently underway to trace his international movements and identify overseas assets linked to the case.
Fraudulent Crypto Platforms Used
The ED’s investigation revealed that the accused floated and operated several deceptive crypto platforms, including:
- Korvio
- Voscrow
- DGT
- Hypenext
- A-Global
These platforms allegedly functioned as classic Ponzi schemes, wherein funds collected from new investors were used to pay earlier participants, creating an illusion of profitability and legitimacy.
Fake Tokens and Platform Relaunch Strategy
Investigators found that the accused repeatedly created fake crypto tokens with no intrinsic value or legitimate blockchain backing. Token prices were artificially manipulated to show rapid appreciation, encouraging further investments.
Once scrutiny increased or payouts slowed, the platforms were abruptly shut down and relaunched under new names, using fresh branding and marketing strategies to evade regulatory detection and continue the fraudulent operations.
Commission Agents and MLM Network
A large network of commission agents and promoters played a crucial role in expanding the scam’s reach, the ED said. These agents allegedly earned crores of rupees in commissions by recruiting new investors into the schemes.
Foreign travel incentives, luxury rewards, and high-profile promotional events were reportedly used as marketing tools to build trust and attract a larger investor base across multiple states.
Money Laundering Through Shell Entities
The ED stated that proceeds of crime were laundered through complex financial channels. Large cash collections were routed via builders, shell companies, and personal bank accounts belonging to the accused and their close relatives.
Investigators recovered documentary and digital evidence indicating systematic layering and integration of illicit funds to disguise their criminal origin.
Illegal Sale of Frozen Property Flagged
In a significant development, the ED flagged a serious violation involving the illegal sale of 15 plots of land located in Zirakpur, Punjab. The properties had been frozen under PMLA provisions in November 2023.
Despite the freeze orders, one of the accused, Vijay Juneja, allegedly went ahead with the sale of the properties. Juneja was subsequently arrested by the Himachal Pradesh Police in 2025 in connection with the case.
Assets Frozen and Seized
The December 13 searches resulted in the freezing of three bank lockers and the attachment of bank balances and fixed deposits collectively valued at approximately ₹1.2 crore.
Additionally, the ED seized incriminating documents, digital devices, investor databases, transaction records, and other materials pointing to large-scale laundering of illicit funds.
Investor Losses Under Assessment
Authorities are currently assessing the total number of investors affected and the precise quantum of losses. Preliminary estimates suggest that the scam may have impacted thousands of individuals across multiple states.
The ED has urged victims of the alleged crypto Ponzi schemes to come forward with relevant information to assist the investigation.
Investigation Continues
The Enforcement Directorate confirmed that further investigation is ongoing to trace additional assets, identify remaining beneficiaries, and pursue legal action against all individuals involved in the scam.
Officials indicated that more seizures and arrests may follow as the probe progresses.
Disclaimer: This report is based on official statements and ongoing investigations. Allegations are subject to judicial scrutiny, and all accused are presumed innocent until proven guilty by a court of law.