The Enforcement Directorate (ED) has arrested a key accused in a massive ₹500-crore cryptocurrency fraud case that allegedly cheated more than 2.48 lakh investors across India through a multi-level marketing (MLM) scheme disguised as a crypto investment platform.
ED Conducts Raids, Arrests Main Accused
The federal anti-money laundering agency conducted searches at premises linked to Vijay Kumar Juneja and Masoom Juneja before arresting Masoom Juneja under the provisions of the Prevention of Money Laundering Act (PMLA).
During the raids, ED officials seized several incriminating documents, digital devices, and financial records that are expected to provide crucial evidence in the ongoing investigation.
How the Alleged Crypto Scam Operated
The money laundering case stems from FIRs registered by police authorities in Himachal Pradesh and Punjab against Subhash Sharma and several associates.
According to the ED, the accused launched a cryptocurrency-based investment scheme in 2018, promoting a digital token known as Korvio Coin (KRO). Investors were allegedly lured with promises of guaranteed returns, high-profit opportunities, and aggressive marketing campaigns, including promotional events and seminars.
Investigators claim the operation initially functioned through servers located in India before shifting overseas and operating via domains such as korvio.io and voscrow.com.
Ponzi-Like Structure Used to Attract Investors
The agency alleges that the scheme followed a Ponzi-style model, where funds collected from new investors were used to pay returns to existing participants. To sustain the operation, the accused reportedly introduced new digital tokens and continued making unrealistic profit promises.
The ED stated that cryptocurrency values were allegedly manipulated to maintain investor confidence and encourage further investments.
Over 2.48 Lakh Investors Affected
Despite attempts to erase digital evidence, investigators reportedly recovered significant data linked to the operation.
According to the agency, more than 2.48 lakh users invested through the platform, while transactions exceeding USD 219 million were executed through the network.
The ED estimates that total investor losses may be close to ₹500 crore, making it one of the largest alleged cryptocurrency fraud cases currently under investigation in India.
Money Laundering Trail Under Scanner
Investigators claim that the proceeds of crime were routed through multiple bank accounts, shell entities, and intermediaries to conceal the source of funds.
A portion of the money was allegedly converted into cryptocurrency assets to further obscure the financial trail.
The agency alleges that significant amounts of investor funds were eventually transferred to Vijay Kumar Juneja and Masoom Juneja.
Properties Purchased Using Alleged Fraud Proceeds
According to the ED, the accused used the funds to acquire various immovable properties. Authorities suspect that several property transactions were deliberately undervalued in official records, allowing substantial portions of payments to be made in cash.
The agency believes this method was used to launder proceeds generated through the alleged fraudulent investment scheme.
Statements recorded during the investigation reportedly indicate that cash was handed over to Vijay Kumar Juneja and Masoom Juneja on behalf of the scheme's alleged mastermind, Subhash Sharma, and his associates.
Mastermind Allegedly Fled to Dubai
The ED further claimed that Subhash Sharma left India and relocated to Dubai after the alleged scam came under scrutiny.
Investigators are now examining financial records, cryptocurrency transactions, and overseas links connected to the operation as part of the ongoing probe.
The agency has stated that the investigation remains active and further action may follow as additional evidence emerges.