Cryptocurrency fraud of more than Rs 1,000 crore was found by the economic offenses wing
The State Crime Branch’s Economic Offences Wing (EOW) has exposed a massive cryptocurrency fraud that included over 2 lakh people, deposits worth more than Rs 1,000 crore, and spread throughout India. The scam, orchestrated by a business called STA Token (Solar Techno Alliance), developed as a pyramid-structured Ponzi scheme that deftly avoided the Reserve Bank of India’s (RBI) investigation.
Despite the lack of official complaints from the impacted investors, the EOW conducted a comprehensive investigation that exposed STA Token’s illegal activities. Under the pretense of cryptocurrency investments, the firm secretly engaged in unlawful multi-level marketing and money circulation while avoiding obtaining the RBI’s required approval. According to J N Pankaj, the Inspector General of EOW, “Our research showed that STA Token had been directing a complex web of financial fraud. Without the RBI’s required clearance, the firm illegally drew deposits.
Gurtej Singh Sidhu, the country leader of STA Token, and Nirod Das, the head of Odisha, who was the subject of the EOW’s investigation, were captured and put into arrest. Das was apprehended in Bhadrak, while Sidhu, a native of Faridkot in Punjab, was detained in Sri Ganganagar, Rajasthan. In Sri Ganganagar, Sidhu appeared before a judge issuing a seven-day transit detention.
According to reports, the fake organization collected Rs 30 crore from about 10,000 people in places like Bhadrak, Keonjhar, Balasore, Mayurbhanj, and Bhubaneswar. Additionally, 2 lakh investors from Bihar, Uttar Pradesh, Punjab, Rajasthan, Haryana, Delhi, Jharkhand, Assam, and Madhya Pradesh contributed an astounding total of Rs 1,000 crore.
Pankaj explained, “Our action was prompted by a warning from the intelligence community about a Bitcoin scam in Bhadrak. The strategy Das used involved persuading locals to invest in cryptocurrencies while tempting them to recruit new investors underneath them. The corporation offered enticing incentives, with awards based on the number of recruitments, to anyone who might widen this web of investors.
The fact that STA Token’s website was housed in Iceland while its illegal financial transactions were spread out across India was one of EOW’s most important revelations. The business deftly positioned itself as a provider of solar technology exports and IT-enabled services. The cover also included endorsing Bitcoin exchanges and blockchain technologies.
In addition, Pankaj stated, “Our inquiry revealed that between January and July of this year, almost Rs 15 crore had been transferred into two of Das’s accounts. Unusually substantial cash deposits were seen in both accounts.
The EOW’s persistent work has exposed a sophisticated network of fraudulent activities masterminded by STA Token, highlighting the pressing need for increased vigilance in cryptocurrency. This large-scale Ponzi scheme serves as a sharp reminder of the dangers present in the uncontrolled world of digital investments, highlighting the urgent need for strong regulatory frameworks to protect unwary investors from falling victim to such schemes.
The incident serves as a cautionary tale, advising people to exercise vigilance and caution while navigating the alluring yet dangerous world of cryptocurrency investments as authorities continue to look into the extensive effects of STA Token’s malign behavior.
