Shimla, Dec 14 (NationPress) The Enforcement Directorate (ED) in Shimla has executed search operations at eight locations in Himachal Pradesh and Punjab, following the Prevention of Money Laundering Act (PMLA), linked to an investigation into a massive fraudulent cryptocurrency Ponzi/Multi-Level Marketing (MLM) scheme, as stated in an official announcement on Sunday.

This scam reportedly defrauded lakhs of investors across both states, accumulating losses of approximately Rs 2,300 crore.

The searches took place on Saturday.

The ED launched its probe based on numerous FIRs filed at various police stations in Himachal Pradesh and Punjab against Subhash Sharma, the alleged mastermind, who is said to have fled the country in 2023, along with other accomplices.

The FIRs were filed under diverse sections of the Indian Penal Code, 1860, the Chit Funds Act, 1982, the Banning of Unregulated Deposit Schemes Act, 2019, and other relevant laws.

As per the ED, the accused operated deceptive cryptocurrency-based MLM/Ponzi schemes through platforms like Korvio, Voscrow, DGT, Hypenext, and A-Global, enticing unsuspecting investors with unrealistic promises of exceptionally high returns.

These platforms were unauthorized and were essentially Ponzi schemes, where the money from new investors was utilized to pay off earlier investors.

The investigation has further uncovered that the suspects created numerous fake crypto platforms, manipulated fictitious token values, and periodically shut down and rebranded their platforms to hide the fraud and escape detection.

The ED also discovered that the proceeds of the crime were laundered via cash-based collections funneled through prominent builders—who were also investigated during the searches—shell companies, and the personal bank accounts of the accused and their family members. Several individuals acting as commission agents purportedly earned crores by bringing in new investors into the scheme.

To broaden their network, the accused allegedly offered incentives for international travel and organized promotional events to lure investors.

Even after freezing orders were issued on November 4, 2023, by the appropriate authority based on investigations by state police—and duly communicated to the Finance Secretary, the court, and the Punjab government’s revenue authorities—15 plots of land in Zirakpur, Punjab, were unlawfully sold.

This sale was allegedly executed by one of the accused, Vijay Juneja, who was apprehended by Himachal Pradesh Police in 2025, in clear violation of the law.

Following the searches, the ED has frozen three lockers and bank accounts/fixed deposits amounting to nearly Rs 1.2 crore.

Additionally, a range of incriminating documents related to investments in multiple immovable properties, including benami assets obtained using illicit funds, investor databases, commission structures, and digital devices have been seized, indicating widespread generation and laundering of illegal funds. Further investigations are ongoing.