ED Takes Three Accused Into 12-Day Custody Over Rs 500 Crore Crypto Fraud
The Directorate of Enforcement has arrested three people linked to a big cryptocurrency scam worth around Rs 500 crore. The arrests happened under the Prevention of Money Laundering Act and the accused now face 12 days of custody for further questioning.
What Led to These Arrests
Officials from the ED office in Shimla took action after police cases were filed in Himachal Pradesh and Punjab. The three men arrested are Milan Garg, Sukhdev Thakur and Abhishek Sharma. They were already in jail for other charges, so the ED brought them out using special warrants and placed them in its own custody.
How the Scam Worked
The group ran fake investment websites such as Korvio, DGT, Hypenext and A-Global. They promised people high and safe returns if they bought a digital coin called Korvio Coin. In reality the whole setup was a Ponzi scheme where money from new investors paid the old ones. The platforms were moved to foreign servers to hide tracks and records were deleted, yet investigators recovered data showing more than 2.48 lakh users lost money. Total money moved crossed 219 million US dollars.
Roles of the Accused
Milan Garg is said to be the main technical brain behind the sites. He built the platforms, handled crypto wallets and moved investor money around. Sukhdev Thakur and Abhishek Sharma brought in new people by giving false promises and collected cash that was later handed over to other members of the group. Both also earned big commissions and bought property with the illegal money.
Earlier Arrests in the Same Case
The ED had already arrested two other people named Hem Raj and Masoom Juneja in this case. The main person behind the plan, Subhash Sharma, is still missing. The agency continues to trace how the money was moved through bank accounts, crypto wallets and real estate deals.
Why This Case Matters
Cryptocurrency scams like this hurt thousands of small investors who put in their savings hoping for quick gains. The case shows how MLM-style crypto plans can fool people with flashy seminars and fake token prices. It also highlights the growing use of foreign servers and digital tools to cover up fraud.
What Investors Should Know
Anyone thinking of putting money into new crypto projects should check if the company is registered and whether returns are realistic. Promises of guaranteed high profits are almost always a warning sign. Government agencies are now watching such schemes more closely and taking action under money laundering laws.
This arrest and custody order send a clear message that regulators will keep going after those who run fake crypto investment plans. More updates are expected as the investigation moves forward.
