ED arrests key accused in Rs 500 crore Crypto scam; 2.48 lakh investors duped

The Enforcement Directorate (ED) arrested one of the main accused in an alleged Rs 500-crore cryptocurrency fraud case. Investigators claim the operation duped more than 2.48 lakh investors across multiple states in India. The federal agency conducted raids on premises linked to Vijay Kumar Juneja and Masoom Juneja, subsequently arresting the latter under the Prevention of Money Laundering Act (PMLA). During these searches, authorities seized incriminating documents and digital devices.

According to the ED, the scam was initiated in 2018 through a cryptocurrency-based multi-level marketing (MLM) scheme launched by Subhash Sharma and several associates. The operation used an online platform to attract investors, initially running on Indian servers before shifting overseas to domains such as korvio.io and voscrow.com. Investors were allegedly lured with promises of assured returns, flashy promotional events, and seminars involving a token called 'Korvio Coin'. Investigators stated that token values were manipulated to maintain investor confidence.

The agency described the venture as a classic Ponzi scheme, where money from new participants was used to pay earlier investors. As the operation continued, the accused allegedly introduced new tokens and made unrealistic profit promises while deleting digital records and internet domains to destroy evidence. Recovered data ultimately indicated transactions exceeding USD 219 million. The probe found that funds were layered through fictitious entities, bank accounts, and intermediaries before being routed to Vijay Kumar Juneja and Masoom Juneja, who allegedly used the money to buy undervalued immovable properties.

Not yet reported: The reports do not specify when the initial police FIRs were filed or the exact dates of the overseas server migration.