EOW Odisha claims to have unearthed a massive cryptocurrency-based Ponzi scam

The Financial Offence Wing (EOW) of Odisha police on August 7 claimed to have unearthed one of many largest cryptocurrency-based Ponzi schemes involving ₹1,000 crore and two lakh individuals.

The EOW arrested Gurtej Singh Sidhu (40), the India head of 1 STA (Photo voltaic Techno Alliance) Crypto Token, from Sri-Ganganagar, Rajasthan.

Sidhu, a local of Faridkot, Punjab, was produced earlier than native court docket in Sri-Ganganagar which granted seven days transit of remand. He was dropped at Odisha and can be produced earlier than Odisha Safety of Pursuits of Depositors (OPID) Court docket, Cuttack.

Launched in 2021, the STA (Photo voltaic Techno Alliance) Crypto was working by way of web site and social media accounts. It was mentioned to be a one cease photo voltaic applied sciences service that enabled customers to order something they like from the closest farmers in shortest period of time utilizing block chain expertise, says EOW in an announcement.

EOW Chief Jai Narayan Pankaj mentioned, “not licensed by Reserve Financial institution of India or another authorities to gather deposits, the STA runs an enormous Ponzi multi-level advertising scheme within the garb of crypto token. STA makes use of the socially well-liked phrases like inexperienced vitality and photo voltaic expertise to masks its Crypto-Ponzi rip-off.”

The STA web site was hosted from Iceland. The STA is headed by one David Gez, a younger Hungarian (Europe) nationwide who has visited India a number of instances, whereas Sidhu is alleged to have reached the highest stage of STA’s Pyramid construction (Kohinnor management in STA language), says EOW.

“Like another MLM scheme, members initially received some financial advantages which tempted them so as to add increasingly members underneath them. Transactions (credit score and debit) of greater than Rs 30 crore was seen within the checking account of Nirod Das, Odisha head of STA,” Mr. Pankaj knowledgeable.

He mentioned, “there was big money deposits in his (Das) accounts which signifies that a number of black cash was routed or parked on this rip-off. All of the accounts had been frozen. Whole cash concerned (Pan India) in STA was estimated to be greater than Rs 1000 Crores.”

Members had been promised that they might earn US Greenback 20 to 3000 per day if they might this scheme and would add extra members underneath them. In addition to, they had been promised to get bonus and varied royalties for including new members.

Odisha EOW says Sidhu and David had been all the time seen having luxurious life fashion which included possession of high-priced vehicles, fancy cloths, surrounded by bouncers and hero’s welcome in assembly.

“At a celebration held in an expensive star resort in Goa final week, greater than 1000 up-line members together with many from Odisha had been current. Movie star Govinda was the chief visitor of that celebration. Govinda had additionally launched some video selling or endorsing the STA,” the EOW investigation revealed.

After getting intelligence from varied sources {that a} crypto currency-based ponzi scheme was being run in Odisha particularly in Bhadrak, Balasore, Bhubaneswar, Mayurbhanj, Jajpur, Kendrapada and Keonjhar districts, the EOW received an enquiry performed on STA.

“It’s estimated that greater than 10,000 individuals from Odisha are members of this scheme. This scheme has greater than two lakh members in India, primarily from the states like Punjab, Rajasthan, Bihar, Jharkhand, Haryana, Delhi, Madhya Pradesh, Maharashtra, Odisha and Assam,” mentioned Mr. Pankaj.