Indian Authorities Arrest Eight, Including Police Officers, in $300 Million Crypto Fraud Case

In a shocking revelation, Indian authorities have made additional arrests, including four police officers, bringing the total number of individuals detained in connection with a crypto fraud to 18. This elaborate scheme, centered around the cryptocurrency Korvio Coin (KRO coins), has defrauded over 100,000 victims, including government officials and law enforcement personnel, with losses estimated at an astounding $300 million (2500 crore Indian rupees).

The fraud, which surfaced in late September, has unveiled a complex operation dating back to 2018. Fraudsters targeted unsuspecting victims with investment schemes involving Korvio Coin and later expanded their deceptive practices to include various other cryptocurrencies. Notably, the perpetrators executed a “rug pull,” abandoning at least one cryptocurrency project after individuals had invested in it.

During the past two years, a total of 56 complaints were filed with local police stations, prompting multiple agencies, including the Enforcement Directorate and regional police teams, to launch a sweeping investigation led by the SIT. In late October, numerous searches were conducted, leading to the discovery of around 250,000 identification cards linked to suspects. Investigations have revealed that more than 100 individuals profited by $240,000 each from the scam, while another 200 made approximately $120,000 each.

Over 1,000 Police Officers Involved in Crypto Fraud Scheme; Mastermind Still at Large

What sets this crypto fraud apart is the extensive involvement of police personnel, with more than 1,000 officers becoming entangled in the scheme. Some officers were unwittingly victimized, while others actively participated and even assumed roles as promoters.

This nefarious scheme first came to public attention through independent MLA Hoshyar Singh in Himachal Pradesh’s parliament. At the time of its discovery, the fraud was estimated to be worth approximately $20 million.

The Special Investigation Team (SIT) leading the probe has made 18 arrests in connection with the fraud. However, the alleged mastermind, Subhash Sharma, remains at large, posing a significant challenge for law enforcement. Efforts to identify and seize properties linked to Sharma have been initiated, but his whereabouts remain unknown.

In addition to the arrests, the Enforcement Directorate is investigating the involvement of five women suspected of serving as agents or promoters for the alleged kingpin. The victims of this widespread scam, totaling over 100,000 people, come from various backgrounds, including thousands of government employees.

This incident underscores the growing challenge of combating elaborate crypto frauds in India as authorities grapple with the complex task of prosecuting those responsible. Investigations are ongoing, revealing the extensive impact of the scheme, with over 56 complaints filed in the past two years and individuals profiting substantially from the fraudulent activities.

Alleged Scam Mastermind, Subhash Sharma, Evades Authorities Despite Arrests and Asset Seizures

Despite the significant number of arrests, the alleged mastermind, Subhash Sharma, remains at large. Authorities have identified and seized several properties connected to Sharma, and the Enforcement Directorate is probing the activities of five women suspected of acting as agents or promoters for the kingpin.

The Deputy Chief Minister of Himachal Pradesh, Mukesh Agnihotri, has informed the public to anticipate further arrests as the investigation progresses and authorities compile a list of individuals who invested in the scheme.

This situation coincides with a recent crackdown by Thai authorities on a fraudulent crypto scheme worth $277 million, with the assistance of Binance and U.S. authorities, highlighting the ongoing battle against crypto-related fraud on a global scale.