© The Indian Express Pvt Ltd
Tags:
Journalism of Courage
The Enforcement Directorate (ED)’s Shimla wing carried out search operations at eight premises located in Himachal Pradesh and Punjab in connection with an ongoing investigation into an alleged Rs 2,300-crore cryptocurrency-based ponzi and multi-level marketing scam. The raid were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
During the searches, the ED seized incriminating documents, including documents related to immovable properties, investor records, commission structures, and several digital devices. In addition, three bank lockers and fixed deposits amounting to around Rs 1.2 crore were frozen, a senior officer said, adding the searches were carried out over the last two days.
According to the ED’s probe, the accused persons allegedly launched and operated fraudulent crypto-based MLM and ponzi schemes through multiple purported platforms such as Corviyo, Cosco, DGT, HyperNet, and A-Global. Investors were lured with false promises of extraordinarily high returns. In reality, these platforms were unregulated and self-created, operating in the nature of ponzi schemes wherein funds collected from new investors were used to pay earlier investors.
The searches further revealed that the accused created multiple fake crypto platforms, manipulated prices of fictitious tokens, and periodically shut down and rebranded platforms to conceal the fraud. To launder the proceeds of crime, cash-based collections were allegedly routed through well-known builders — who were also covered during the searches — shell entities, and personal bank accounts of the accused and their relatives.
The ED also found that several individuals acted as commission agents for the ponzi schemes, earning crores of rupees by attracting unsuspecting new investors. Foreign travel incentives and promotional events were allegedly used to expand the scheme and lure more investors.
The investigation further revealed that despite freezing orders issued by the competent authority on November 4, 2023 — based on investigations by the state police and duly intimated to the Finance Secretary, the competent court, and revenue authorities of the Punjab government — 15 land parcels located in Zirakpur, Punjab, were illegally sold. The sale was allegedly carried out in gross violation of the law by one of the arrested accused, Vijay Juneja, who was arrested by the Himachal Pradesh Police in 2025.
