The Directorate of Enforcement (ED) in Shimla has conducted extensive search operations and arrested Masoom Juneja in connection with a large-scale cryptocurrency scam allegedly involving Rs 500 crore in Himachal Pradesh. The searches targeted the premises of Vijay Juneja and Masoom Juneja.
Information was available with The Chenab Times that the searches were conducted under Section 17(1) of the Prevention of Money Laundering Act (PMLA), 2002. During the operation, the ED seized documents and digital devices believed to be crucial evidence in the case. According to the ED, funds collected from investors in the fraudulent scheme were systematically channeled to Vijay Kumar Juneja and Masoom Juneja.
Further investigation revealed a modus operandi where the collected funds were allegedly used to acquire immovable properties. The ED noted that the registered values of these properties were significantly lower than the actual amounts paid, indicating a deliberate strategy to settle a substantial portion of transactions in cash. This practice facilitated the laundering of funds generated from the illegal cryptocurrency scheme.
Statements obtained from individuals under Section 50 of the PMLA indicated that cash payments were made to Vijay and Masoom on behalf of Subhash Sharma, who is identified as the alleged mastermind behind the entire operation. Investigations also brought to light that Vijay and Masoom acted as nominees in several accounts held in the names of employees, suggesting their control over these accounts. These accounts were reportedly utilized for layering and concealing the proceeds of the criminal activities.
Masoom Juneja was formally arrested under Section 19(1) of the PMLA, 2002. The arrest is part of the ED’s ongoing efforts to accurately determine the total quantum of proceeds generated and subsequently integrated into the financial system through the cryptocurrency fraud.
The current development stems from a major cryptocurrency scam that prompted the ED to initiate an investigation. The agency’s probe is based on First Information Reports (FIRs) initially registered by the police in Himachal Pradesh and Punjab against Subhash Sharma and a group of other individuals. The scam, which surfaced in 2018, involved a multi-level marketing (MLM) scheme operating through an online platform that promised high returns on investments in a cryptocurrency known as “Korvio Coin (KRO)”.
The scheme was allegedly orchestrated by Subhash Sharma in collaboration with co-accused Hem Raj, Sukhdev Thakur, Abhishek Sharma, and Radhika Sharma. To manage controlled operations and facilitate large-scale investor enrollment, the scheme was launched through an online platform. Subsequently, the platform’s infrastructure was reportedly migrated to foreign servers hosted by DigitalOcean, operating under domain names such as korvio.io and voscrow.com, to sustain the illicit operations.
Investors were reportedly enticed to invest in “Korvio Coin (KRO)” with promises of assured high returns. The accused allegedly employed tactics such as conducting misleading seminars, manipulating the token’s value, and introducing new tokens. This strategy was designed to maintain a Ponzi structure, where funds from new investors were used to pay off earlier investors, thereby creating an illusion of profitability and sustainability.
In an effort to evade detection and conceal their activities, the accused reportedly deleted digital records and domain information. However, data recovered during the investigation indicated that over 2.48 lakh individuals became victims of this fraud. The total transaction value reportedly exceeded USD 219 million, leading to estimated investor losses of approximately Rs 500 crore.
The alleged perpetrators engaged in extensive layering of funds. This involved routing proceeds through numerous bank accounts, fictitious firms, and intermediaries. A portion of the illicit gains was allegedly converted into cryptocurrency to further obscure the audit trail and make tracing the origins of the money more difficult. Following the exposure of the scam, Subhash Sharma is reported to have fled to Dubai in an apparent attempt to escape legal prosecution.
The Chenab Times News Desk