The Enforcement Directorate (ED) conducted search operations across Chandigarh, Mohali, and Zirakpur on 28 October in connection with a ₹500 crore cryptocurrency fraud linked to Korvio Coin (KRO), seizing ₹72 lakh in cash, property documents, and multiple digital devices, officials confirmed on 31 October. The raids, carried out by the ED's Shimla Sub-Zonal Office under Section 17(1) of the Prevention of Money Laundering Act (PMLA), 2002, mark a significant escalation in the agency's pursuit of the alleged mastermind, Subhash Sharma, who is believed to be sheltering in Dubai.

The Arrest and What Investigators Found

During the search operation, ED officials arrested Atul Sood, described as a close aide of Subhash Sharma. According to the ED, Sood had travelled to Dubai to meet Sharma and was involved in organising conferences and other promotional events for the fraudulent scheme — activities that continued even after First Information Reports (FIRs) had been registered against the accused.

Sood was produced before the Special PMLA Court in Shimla on 29 October, which granted his custody until 5 November. Investigators also recovered incriminating documents, bank account records, and digital devices during the raids.

How the Korvio Coin Fraud Operated

According to the ED, Subhash Sharma, in connivance with associates including Hem Raj, Sukhdev Thakur, Abhishek Sharma, and others, operated a cryptocurrency-based multi-level marketing (MLM) scheme through an online platform. Investors were induced to put money into Korvio Coin (KRO) with promises of assured high returns.

The scheme functioned on a Ponzi model, wherein funds from new investors were used to pay earlier participants. Recovered digital data indicated that more than 2.48 lakh users were affected, with transactions exceeding $219 million and estimated investor losses of around ₹500 crore.

Investigators found that funds collected from investors were predominantly received in cash and funnelled upward through team leaders before ultimately reaching Sharma and his aides, including Vijay Kumar Juneja and Masoom Juneja. A portion of these proceeds was allegedly used to acquire immovable properties, with actual consideration paid in cash while registered values were kept significantly lower. Another portion was routed through fictitious firms and multiple bank accounts before being partially converted into cryptocurrency to obscure its trail.

Earlier Raids and Previous Arrests

This is not the ED's first action in the case. Earlier search operations on 13 December 2025 and 15 June 2026 had targeted premises of individuals associated with the scheme, resulting in seizures of incriminating documents, digital devices, and movable assets valued at ₹1.5 crore.

In connection with the case, five associates of Sharma — Hem Raj, Sukhdev Thakur, Abhishek Sharma, Milan Garg, and Masoom Juneja — have already been arrested. A charge sheet along with a supplementary charge sheet against them has been filed before the Special Court in Shimla.

Mastermind Remains at Large in Dubai

The ED investigation was initiated on the basis of FIRs registered by both Himachal Pradesh Police and Punjab Police against Sharma and others. Sharma allegedly fled to Dubai after the scheme collapsed, leaving thousands of investors with substantial financial losses. The ED has initiated legal proceedings against him before competent authorities, though his extradition or return remains pending.

With the latest arrest and seizures, the ED's net is visibly tightening around the network that kept the Korvio Coin scheme operational — even as its alleged architect remains out of reach abroad.