The Odisha police’s Economic Offences Wing (EOW) recently conducted a crackdown on a crypto-based Ponzi scam valued at over Rs 1000 crore. According to a local news report, two individuals, Gurtej Singh Sidhu, and Nirod Das, were apprehended for their involvement in this fraudulent scheme.
The scam operated under the guise of a solar technology service called ‘STA Crypto Token,’ where the unauthorized company used the popularity of green energy to deceive investors. They made enticing promises of daily earnings ranging from $20 to $3000 to attract new members.
This fraudulent operation managed to attract over 2 lakh members across several Indian states, and they even used high-profile events and celebrity endorsements, including Bollywood actor Govinda, to create an illusion of legitimacy.
Suspicions arose when transactions totaling more than Rs 30 crore were traced to Nirod Das’s account, the Odisha head of the company, indicating the potential involvement of black money.
In response, the EOW took swift action and froze all related accounts while cautioning investors and celebrities to be vigilant before engaging in or endorsing such schemes.
The dismantling of the crypto-based Ponzi scam by Odisha police highlights the need for strict regulation and vigilance in the cryptocurrency space to protect investors and prevent illicit schemes from exploiting the popularity of emerging technologies.
Also Read: Indian SC Slams Union Government Over Delay in Crypto Laws
