The Enforcement Directorate (ED), Shimla Office, on Monday, 15 June, conducted search operations at the premises of two arrested co-accused — Vijay Juneja and Masoom Juneja — in connection with a ₹500 crore cryptocurrency Ponzi scam, recovering incriminating documents and digital devices. The searches were carried out under Section 17(1) of the Prevention of Money Laundering Act (PMLA), 2002.

Background of the Scam

According to the ED, the fraud was orchestrated in 2018 by key accused Subhash Sharma, in connivance with co-accused Hem Raj, Sukhdev Thakur, Abhishek Sharma, and Radhika Sharma. The group launched a cryptocurrency-based multi-level marketing (MLM) scheme through an online platform designed to enable large-scale investor enrolment and controlled operations.

The platform was subsequently migrated to foreign servers hosted on Digital Ocean and operated through domains including korvio.io and voscrow.com. Investors were lured with promises of assured high returns on a token called 'Korvio Coin (KRO)'. The scheme employed misleading seminars, manipulated token valuations, and periodic introduction of new tokens to sustain a classic Ponzi structure — using funds from incoming investors to pay earlier ones.

Scale of the Fraud

Recovered data revealed that more than 2.48 lakh users fell victim to the fraud. Total transactions on the platform exceeded $219 million, with investor losses estimated at ₹500 crore, according to the ED. The investigation was initiated on the basis of First Information Reports (FIRs) registered by both Himachal Pradesh Police and Punjab Police against Subhash Sharma and others.

Money Trail and Layering

The ED said the accused concealed their activities by deleting digital records and domains. Funds collected from investors were routed through numerous bank accounts, fictitious firms, and intermediaries. A portion of the proceeds was converted into cryptocurrency to obscure the audit trail — a layering technique commonly used in money laundering. According to the agency, funds were channelled specifically to Vijay Kumar Juneja and Masoom Juneja, who allegedly used them to acquire immovable properties.

Key Accused Reportedly Abroad

Following the exposure of the scam, key accused Subhash Sharma reportedly fled to Dubai. Both Vijay Juneja and Masoom Juneja are already under arrest. The ED has not yet disclosed whether extradition proceedings against Sharma have been initiated. This case follows a broader pattern of cryptocurrency-linked financial fraud cases that Indian investigative agencies have intensified action on in recent years.

With fresh seizures secured, the ED's investigation is expected to widen as authorities trace the full extent of the money trail and identify additional beneficiaries.