80,000 victims, Rs 2,000 crore trail: Why Himachal Pradesh High Court denied bail to accused in massive crypto-MLM fraud

“The investigation prima facie reveals that thousands of investors have fallen victim to this fraudulent scheme, as more than 80,000 investors have contributed over the past years with a total investment of around Rs 2,000 crores, and there is an estimated loss of Rs 500 crores to the investors,” Justice Kukreja said.

‘Such economic offences impact common man’

• The nature and seriousness of an economic offence and its impact on society are always important considerations in such a case, and those aspects must be squarely dealt with by the court while passing an order on bail applications, the Himachal Pradesh High Court noted.
• In such types of offences, while granting bail, the court has to keep in mind, inter alia, the larger interest of the public and the state.
• The law relating to bail in a case of economic offences is more or less settled in the decisions of the Supreme Court.
• As per the status report, the role of the petitioner in the Korvio, Voscrow, DGT and Hypernext platforms was substantial, the Himachal Pradesh High Court pointed out.
• The analysis of backend data, payout records and statements of witnesses showed that the petitioner had actively participated in the promotion of the fraudulent schemes and had facilitated the registration of a large number of ID’s under his network.
• Prima facie, considering the role played by the petitioner in the entire episode, the impact of such economic offences on society, particularly on the common man who has been lured to make investments, merely because some of the co-accused persons have been enlarged on bail, this court is not inclined to release the petitioner on bail at this stage in the larger interests of the public and the state.

Court’s findings

• As per the status report, the petitioner is accused of economic offences of a huge magnitude, the Himachal Pradesh High Court found.
• The investigation qua the petitioner was complete, and a chargesheet was filed against him before the learned designated court, which details the role of the petitioners.
• It was also found that the petitioner collected money from several investors and handled cryptocurrency-based transactions without providing any satisfactory explanation regarding the utilisation of these funds.
• The investigation revealed that the petitioner was a close associate of the main accused, Subhash Sharma, and he was the top liner in the chain.
• He lured many people from the state and other parts of the country into the scheme.
• Some of the top liners, including the main accused Subhash Sharma, have absconded and moved out of India.

Background

The case originated from complaints involving platforms such as Korvio, Voscrow, and Hypenext. According to the prosecution, these entities lured the public by promising to double investments through virtual currencies and fake websites.

While initial returns were paid to build trust, the distribution of funds was abruptly stopped in late 2021. As per the complainant, the accused persons, in connivance with one another, and by developing fake websites and showing fake coins, embezzled a huge amount.

The investigation revealed a sophisticated operation where promoters used “cool calculation and deliberate design” to embezzle public funds. Several high-level accused fled to Dubai before the registration of the First Information Report (FIR), prompting the issuance of lookout circulars. One of the accused was eventually detained at IGI Airport, New Delhi, in December 2025.