In Himachal Pradesh, a group of fraudsters created a series of cryptocurrencies to deceive thousands of investors, amassing over Rs 200 crore in ill-gotten gains over five years starting in 2018, coinciding with the crypto boom. These individuals, suspected to be part of a criminal network, enticed people with promises of quick, high returns by investing in KRO and DGT coins.
The initial investors were then incentivized to recruit others, following a Ponzi-style scheme. Independent MLA Hoshyar Singh brought this issue to the Vidhan Sabha, estimating that Kangra and Hamirpur alone suffered losses exceeding Rs 200 crore.
Subsequently, a special investigation team was established to look into the matter. The precise amount stolen remains uncertain, according to Deputy Inspector General of Police Abhishek Dhullar, who leads the team. While five individuals have been apprehended, the mastermind remains at large.
The fraudsters employed misinformation, deceit, and intimidation to maintain control over their scheme, manipulating coin prices to continue extracting money from unsuspecting investors. Their first coin, “Korvio Coin” or KRO, required an initial activation fee and promised significant returns. Over their five-year operation, they introduced three to four cryptocurrencies.
Investors were encouraged to recruit more participants, with returns paid to earlier investors using capital from new contributors, adhering to the Ponzi scheme model. These initial investors received substantial returns and became advocates for the scheme.
The scammers created fraudulent websites to promote their coins and manipulated their prices. They later launched “DGT Coin,” deliberately deflating its value after many had purchased it at higher rates, causing significant losses.
The accused frequently introduced new coins and investment plans under different company names, such as “Hypenext” and “Aglobal.” The police received approximately 50 complaints about such frauds in the current year.
Investigators noted similarities in the modus operandi across these cases and common names involved. As a result, five individuals have been arrested and charged, with eight FIRs filed.
By FCCT Editorial Team
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