The Enforcement Directorate (ED) has apprehended Atul Sood, an alleged accomplice of Subhash Sharma, the mastermind behind a cryptocurrency scam involving fictitious Korvio Coin, which defrauded investors of approximately ₹2,500 crore. The scam initially came to light in Himachal Pradesh in 2023.
Information was available with The Chenab Times that the ED’s sub-zonal office made the arrest following extensive search operations conducted across various locations in Chandigarh, Mohali, and Zirakpur in Punjab on October 28. During these searches, ED teams seized Rs 72 lakh in cash, along with a significant volume of incriminating documents, including property records, several digital devices, and bank account statements.
The investigation has revealed Atul Sood’s alleged role in facilitating the scam operations. According to ED statements, Sood reportedly travelled to Dubai to meet with Subhash Sharma and was involved in organizing conferences and other events to promote the fraudulent scheme, even after multiple First Information Reports (FIRs) had been registered concerning the fraudulent activities.
Sood was subsequently produced before the Special Court under the Prevention of Money Laundering Act (PMLA) in Shimla. The court has remanded him to the ED’s custody until November 5, allowing further interrogation and investigation into his involvement.
This development follows earlier actions by the ED. The agency had previously conducted search operations on December 13, 2023, and June 15, 2024. These operations targeted the premises of individuals associated with the fictitious cryptocurrency scheme and resulted in the seizure of incriminating documents, digital devices, and movable assets valued at approximately Rs 1.5 crore. Prior to Sood’s arrest, the ED had already apprehended several of Sharma’s accomplices, including Hem Raj, Sukhdev Thakur, Abhishek Sharma, Milan Garg, and Masoom Juneja.
The ED initiated its investigation based on FIRs lodged by the police departments of both Himachal Pradesh and Punjab against Subhash Sharma and his associates. The probe has indicated that Sharma, in collusion with his accomplices, operated a cryptocurrency multi-level marketing scheme through an online platform. Investors were allegedly induced to invest in Korvio Coin (KRO) by promises of high, assured returns, with the scheme operating on a classic Ponzi model.
Evidence gathered suggests that a portion of the funds collected from investors was allegedly used to acquire immovable properties. A substantial part of the consideration for these properties was paid in cash, with the registered values being considerably lower than the actual market prices. The ED has stated that it has initiated proceedings against Subhash Sharma before the competent authorities concerning these transactions and allegations.
The modus operandi involved inducing investors with promises of exorbitant returns through the Korvio Coin scheme. Many investors, lured by the prospect of quick wealth, invested significant amounts in the cryptocurrency. The subsequent failure of the scheme left a large number of individuals facing substantial financial losses. The ED’s investigation aims to trace the flow of illicit funds, identify all beneficiaries, and recover assets acquired through the fraudulent scheme.
The cryptocurrency scam highlights the growing challenges in regulating digital assets and protecting investors from fraudulent schemes operating online. Regulatory bodies and law enforcement agencies are continually working to strengthen oversight mechanisms and combat financial crimes in the burgeoning digital economy. The ED’s ongoing efforts in Himachal Pradesh and other affected regions are crucial in deterring such activities and bringing perpetrators to justice.
The Korvio Coin scam, estimated to involve around Rs 2,500 crore, is one of the significant financial fraud cases that have emerged in recent years, underscoring the need for enhanced investor awareness and robust regulatory frameworks to safeguard against Ponzi schemes and fraudulent investment ventures in the cryptocurrency space.
The investigation is likely to continue, with authorities seeking to uncover the full extent of the network involved and to ensure that all individuals complicit in the scam are held accountable under the law. The ED’s sustained action against the perpetrators of financial crimes aims to restore confidence among investors and uphold the integrity of the financial markets.
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The Chenab Times News Desk
