A special investigation team (SIT) delving into multi-crore cryptocurrency scams in Himachal Pradesh, where investors fell victim to Ponzi scheme-style operations, has reported the arrest of two individuals believed to be the masterminds behind the fraud. Abhishek Dullar, DIG (Northern range) and the leader of the 13-member SIT, confirmed the arrests.
The investigation revolves around a complex multi-level marketing scam that deceived investors by leading them to believe they were participating in cryptocurrency investments, which, in reality, was not the case. Such fraudulent activities have persisted for several years, according to Dullar.
The issue was brought to light in the state Assembly by Independent MLA Hoshyar Singh during the recent monsoon session. Singh alleged that cryptocurrency frauds had taken place amounting to Rs 200 crore in each of the Kangra and Hamirpur districts alone. In response, Deputy CM Mukesh Agnihotri announced the establishment of the SIT to address the matter.
The fraudsters employed various tactics to entice investors with the promise of substantial returns. They promoted a fictitious cryptocurrency named “Korvio Coin” and manipulated its online prices to their advantage, resulting in financial losses for investors. The accused frequently switched to new cryptocurrencies like “DGT Coin” and “BTPP Token,” altering the terms and values of the schemes to the detriment of investors. When investors sought refunds, the accused allegedly resorted to threats and deleted online records.
The SIT has initiated investigations into 10 cases thus far. DGP Sanjay Kundu emphasized the ongoing efforts to apprehend the culprits, urging the public to remain vigilant against such fraudulent schemes.
