In an alarming twist of events, Himachal Pradesh has fallen victim to a massive cryptocurrency scandal. Investors are learned to be facing substantial losses amounting to $24 million. Believed to have been masterminded by a criminal syndicate, this scam exploited the aspirations of individuals seeking rapid wealth by luring them into investing in KRO and DGT coins.
The masterminds behind this Ponzi-style scheme made use of cunning tactics to lure initial investors into recruiting others. The scam came to light when independent legislator Hoshyar Singh raised the alarm in the state legislature (Vidhan Sabha), estimating that Kangra and Hamirpur alone had seen losses exceeding $24 million (Rs 200 crore).
The investigation into the cryptocurrency fraud is ongoing. Deputy Inspector General of Police, Northern Range, Abhishek Dhullar, is leading the Special Investigation Team (SIT). Five individuals have been arrested in connection with the scheme while the mastermind is still on the run. The fraudsters kept control of their operation using misinformation, deceit and threats. They manipulating coin prices to extort money from unsuspecting investors.
The fraudulent operation commenced with the launch of the “Korvio Coin,” also known as KRO coins. Investors were lured in with the prospect of significant returns following a single activation fee payment. Over a span of five years, the scammers dabbled in three to four different cryptocurrencies.
The modus operandi of this scam was similar to the classic Ponzi scheme. The early investors were paid from the capital of new investors and not from the actual profits. The scammers encouraged investors to continue recruiting new members. The initial investors were used as unwitting ambassadors to lure more victims into the scheme.
It is learned the scammers simultaneously created fraudulent websites to ensure quick riches in the cryptocurrency market.