Cryptocurrency fraud case being referred to Centre’s financial prove unit: Himachal police chief

Himachal Pradesh director general of police Sanjay Kundu said that as investigations progressed, it the depths of the scams were unearthed

Himachal Pradesh director general of police (DGP) Sanjay Kundu on Friday said that the police was in process to refer the cryptocurrency fraud case to the Union finance ministry’s financial intelligence unit (FIU).

Himachal Pradesh director general of police Sanjay Kundu (HT File Photo)

He was addressing a press conference after a range-level crime review meeting.

Deputy inspector general of police (DIG North) Abhishek Dular, who is heading the special investigation team (SIT) probing the scam, Kangra superintendent of police (SP) Shalini Agnihotri were among the other officials present at the conference.

Kundu said that as investigations progressed, it the depths of the scams were unearthed. In the scam, people of the state were allegedly duped of over ₹400 crore on the pretext of doubling their money through investments in cryptocurrency.

He said that the state police will also involve the income tax authorities to map the assets and properties of the accused.

So far, Sukhdev and Hemraj from Mandi district have been arrested in the case. The main accused, Subhash Sharma, is still at large, DGP Kundu said.

The accused linked it with a multi-level-marketing (MLM) scheme and the scam spans across the state and even outside areas, he said.

Over 2.5 lakh identities were created under the scheme in Himachal alone, he added.

Dular said that criminals used a Ponzi scheme pattern, paying returns to earlier investors from the capital contributed by new investors. Those on the top of the tree earned crores of rupees while others got nothing.

He said that the two accused arrested by the SIT during the interrogation revealed that they had liabilities of more than ₹400 crore. The scam is estimated to be worth about Rs. 2,000 crore, he added.