Cryptocurrency theft: A staggering $300 million stolen from 100,000 individuals in India.
Targets included 5,000 government officials and 1,000 police personnel.
Scammers utilized fake websites with exaggerated KRO prices, falsely claiming cryptocurrency was backed by gold and other assets.
Creation of multiple cryptocurrencies, like the deceptive "DGT Coin," to attract more investors.
Evasive tactics employed, including frequent changes in phone numbers and locations, as well as using numerous bank accounts to avoid detection and arrest.
Breakthrough moment: Independent MLA Hoshyar Singh brought the issue to light in the Himachal Pradesh assembly, leading to the scammers' eventual capture by the law.
In the realm of recent scandals, the uncovering of a local crypto scam involving Korvio Coin has sent shockwaves throughout the nation. The audacity of this scam is staggering, with a whopping $300 million stolen from approximately 100,000 victims, including government officials and police personnel.
Much like the familiar narrative of crypto scams, individuals were enticed by promises of astronomical profits derived from manipulated prices. Indian authorities have made 18 arrests, including four police officers, shedding light on the intricate workings of this crypto deception.
The roots of this elaborate scam trace back to 2018 when the masterminds, Subhash Sharma and cohorts, launched the fake Korvio Coin. Initial buyers were coerced into paying an "activation fee," fueling the illusion of lucrative returns. The scammers fabricated websites with inflated KRO prices, falsely claiming the cryptocurrency was backed by gold and other assets. Expanding their web of deceit, they introduced additional cryptos like "DGT Coin" to lure in more unsuspecting investors.
The scam's complexity included a network of agents, promoters, and even police officers, creating an appearance of legitimacy. Tactics such as frequent changes in phone numbers and locations, coupled with the use of multiple bank accounts, helped the perpetrators evade detection. Beyond misleading investors, they manipulated KRO and DGT prices using sophisticated software to fabricate demand and supply.
The scam's unraveling began when independent MLA Hoshyar Singh exposed the issue in the Himachal Pradesh assembly, alleging widespread victimization of government officials and police personnel. A surge in complaints prompted a comprehensive investigation by the SIT, the Enforcement Directorate, and local police units.
The investigation unearthed over 250,000 ID cards linked to suspects during searches in late October. Out of the $300 million pool, more than 100 individuals profited over $240,000, while another 200 made around $120,000. Singh's initial estimate of a $20 million scam proved vastly underestimated.
Despite the arrests and evidence seized during SIT raids, the alleged mastermind, Subhash Sharma, remains elusive. The Enforcement Directorate is now probing the involvement of five women suspected to have worked as agents or promoters for Sharma, with one already in custody. This cautionary tale serves as a reminder of the volatility of cryptocurrencies, emphasizing the importance of independent research and informed financial decisions.
