ED arrests associate of alleged mastermind in Rs 500-crore cryptocurrency fraud, seizes Rs 72 lakh
Neeraj Bali
Chandigarh, Oct 31(UNI) India's Enforcement Directorate (ED) has arrested a close associate of the alleged mastermind behind a cryptocurrency investment fraud involving more than 2.48 lakh users and estimated investor losses of Rs 500 crore, following searches across Chandigarh, Mohali and Zirakpur that led to the seizure of Rs 72 lakh in cash.
The federal financial crime investigation agency said on Saturday that Atul Sood, an associate of Subhash Sharma, the alleged mastermind of the Korvio Coin (KRO) cryptocurrency scheme, was arrested during searches conducted on October 28 under the Prevention of Money Laundering Act (PMLA). Sood was produced before a special PMLA court in Shimla on October 29, which remanded him to ED custody until November 5. The investigation has uncovered an alleged cryptocurrency-based Ponzi scheme involving transactions exceeding $219 million, with investigators claiming that money collected from new investors was used to pay earlier participants while substantial funds were diverted into property purchases and other financial transactions.
"Recovered digital data indicated that more than 2.48 lakh users were affected by the fraud, involving transactions exceeding USD 219 million and estimated investor losses of approximately Rs. 500 crores," the ED said in a statement issued on October 31. According to the agency, Sharma and his associates allegedly operated a cryptocurrency-based multi-level marketing scheme through an online platform, attracting investors by promising assured high returns on investments in Korvio Coin. The scheme allegedly followed a Ponzi model in which funds collected from new investors were used to pay returns to existing participants rather than generating income through legitimate investment activities.
The ED said its investigation revealed that Sood had travelled to Dubai to meet Sharma and was involved in arranging conferences and other events for him, even after FIRs had been registered in connection with the alleged fraud. During the latest searches, investigators seized property-related documents, multiple digital devices, bank account records and cash amounting to Rs 72 lakh.
The agency is examining the seized material to establish the movement of funds and identify assets allegedly acquired using investors' money. Dubai connection and alleged money-laundering network The investigation has also revealed the alleged role of Sharma, who, according to the ED, fled to Dubai after defrauding thousands of investors. "Subhash Sharma, the mastermind behind the fictitious cryptocurrency scam, fled to Dubai after duping thousands of investors, leaving them to suffer substantial financial losses," the agency said.
The ED said it had already initiated legal proceedings against Sharma before the competent authorities in connection with the case. Investigators alleged that funds collected from new investors were predominantly received in cash and subsequently handed over to leaders of different investment teams. The money was then allegedly routed to Sharma and his associates, including Vijay Kumar Juneja and Masoom Juneja. A portion of the funds was allegedly used to acquire immovable properties, with substantial payments made in cash while the values recorded in registration documents were significantly lower than the actual consideration.
The agency said another portion of the money was channelled through multiple bank accounts, fictitious firms and intermediaries before being partly converted into cryptocurrency to conceal its origin and movement. "A smaller portion of the funds received from new investors was routed through multiple bank accounts, fictitious firms, and intermediaries and were partly converted into cryptocurrency to conceal their origin and movement," the ED said.
The suspected use of cash transactions, undervalued property purchases and cryptocurrency conversions forms a key part of the agency's investigation into the alleged laundering of investors' money. Five associates arrested in earlier operations The latest arrest follows two earlier rounds of searches conducted by the ED on December 13, 2025, and June 15, 2026, at premises linked to individuals allegedly associated with the cryptocurrency scheme. Those searches resulted in the seizure of documents, digital devices and movable assets valued at approximately Rs 1.5 crore. The agency said five associates of Sharma - Hem Raj, Sukhdev Thakur, Abhishek Sharma, Milan Garg and Masoom Juneja - had previously been arrested in connection with the case. A prosecution complaint and a supplementary prosecution complaint against them have already been filed before the special court in Shimla. The ED initiated its money-laundering investigation on the basis of FIRs registered by the Himachal Pradesh and Punjab Police against Sharma and others. According to investigators, the accused allegedly created a network of intermediaries and investment teams to mobilise funds by offering unusually high assured returns through the cryptocurrency platform. The agency said its analysis of recovered digital records indicated that more than 2.48 lakh users were affected, while transactions associated with the scheme exceeded $219 million. However, the ED estimated the actual losses suffered by investors at approximately Rs 500 crore, distinguishing the suspected financial damage from the overall volume of transactions. The agency has not disclosed the total value of immovable properties identified during the investigation or the amount of suspected proceeds of crime traced so far. It has also not specified whether any international legal process has been initiated to secure Sharma's return from Dubai. The latest arrest represents another development in the investigation into the alleged cryptocurrency fraud, with the ED continuing to examine the financial network, identify other individuals involved and trace the suspected proceeds of crime. Further investigation is underway. UNI NB AAB
