Last week, the Himachal Pradesh High Court rejected the bail application of Abhishek Sharma, one of the main promoters of a cryptocurrency multi-level marketing (MLM) scheme that allegedly defrauded over 80,000 investors across India. Total losses are currently estimated at around Rs 500 crore, or about $3.6 million.
It was Judge Sushil Kokria who delivered the sentence on April 30.
The court stated, “Economic crimes are considered serious crimes because they affect the country’s economy as a whole, and such crimes that involve a deep-rooted conspiracy and involve a huge loss of public funds must be looked at seriously.”
Indian Ponzi scheme operators get into legal trouble
Sharma and his associates allegedly conducted the scheme through connected platforms, including Korvio, Voscrow, DGT, Hypenext and A-Global.
The chart itself followed a familiar pattern:
- Users bought virtual tokens with real money after being promised to double their returns.
- Early payments have built credibility and attracted more users.
- By December 25, 2021, all distributions had ceased.
The promoters then moved their operations to Hypenext, where they briefly paid partial returns before releasing a video blaming “technical issues” and asking for another five months of patience. Ultimately, users were directed to move their funds to a third platform called A-Global, which never paid any returns.
The mastermind fled to Dubai when the directorate launched raids
Soon after the incident, Subhash Sharma, the main person responsible for the cryptocurrency Ponzi scheme, fled India in 2023. Several other accused members had already moved to Dubai before the police filed first information reports, prompting the authorities to issue surveillance circulars.
By December 2025, the Enforcement Directorate had raided eight locations across Himachal Pradesh and Punjab under the Prevention of Money Laundering Act. One of the accused was also intercepted at Delhi’s IGI Airport as well.
According to local reportsThe agency froze three bank vaults and deposits worth Rs 1.2 lakh crore, or about $126,000, and seized documents relating to real estate investments, including benami properties (owned by the agency) obtained from the proceeds of the fraud.
Investigators also discovered that token prices were being manipulated and money laundered through real estate developers, shell companies and family bank accounts.
Why was Abhishek Sharma denied bail?
Sharma’s lawyers said he was detained for a long period. While the court recognized the constitutional protection against indefinite detention, it also insisted that the scale of the crime and the active role played by Sharma in it justified keeping him in custody.
Additionally, the court stated that the fact that some of the co-accused individuals were granted bail did not afford Sharma the same courtesy, given his role in the conspiracy.
Evidence through analysis of background data, payment records, and witness statements pointed to his significant involvement across multiple platforms.
Asian cryptocurrency scammers face reckoning
the to rule This comes as courts and regulatory bodies across the region tighten their grip on cryptocurrency fraud masterminds.
I mentioned Cryptopolitan previously Regarding the extradition to Cambodia of Chen Chee, the previously accused head of the Prince Group American authorities From operating fraudulent forced labor vehicles that have stolen billions in cryptocurrency. The US Treasury confiscated nearly $14 billion worth of Bitcoin linked to his operations.
The US Treasury even sanctioned a Cambodian senator and 28 entities in April for running fraudulent cryptocurrency pools. Per Cryptopolitan.
In Hong Kong, 10 accused in JPEX cryptocurrency scam Which held more than HK$1.6 billion and more than 2,700 victims, was locked up in March 2026.
A special investigation team was also set up in India in 2023 to specifically investigate cryptocurrency scams in the Himachal Pradesh region. The court stated that MLM and Ponzi schemes repeatedly used the promise of profits to target people in smaller Indian cities where financial literacy about cryptocurrencies is still limited.
