Himachal crypto scam: Fraudsters lured people under the garb of charitable organisation

The SIT has unearthed significant details surrounding the fraudulent activities carried out by the conmen using Him Janseva Foundation, a charitable organisation

The fraudster of the multi-crore cryptocurrency scam in Himachal operated under the guise of a social service organisation while utilising multi-level marketing schemes, the special investigation team (SIT) probing the scam has found.

The accused reportedly victimised thousands of investors in the state and channelled the funds through the foundation’s bank account. (iStock)

The SIT has unearthed significant details surrounding the fraudulent activities carried out by the fraudsters using Him Janseva Foundation, a charitable organisation.

The con men involved in the scam, Subhash Sharma, Hemraj, Sukhdev and Abhishek, established the Him Janseva Foundation, presenting it as a charitable organisation dedicated to social service. The foundation maintained a regular bank account through which transactions worth crores of rupees were conducted on a monthly basis, allegedly under the pretext of social welfare, officials said.

The accused reportedly victimised thousands of investors in the state and channelled the funds through the foundation’s bank account. This approach allowed them to evade detection by the Income Tax Department.

Despite engaging in transactions of high amounts over three to four years, the transactions were not detected by the Income Tax Department.

According to police, most transactions identified during the initial investigation were conducted in cash, further complicating the scandal.

The scheme traces back to 2019 when the accused registered the Him Janseva Foundation, emphasising their dedication to social causes. An year before this, they had launched cryptocurrency “Korvio Coin”. The founders each contributed ₹51,000 during the foundation’s registration, strategically promoting the organisation to gain the trust of potential investors. Seminars held at prominent hotels attracted hundreds of individuals who were enticed to become members by contributing ₹11,000 each.

Subsequent investigations have revealed that, under the guise of social service and cow welfare, the accused secured investments amounting to crores. The foundation also initiated the process of purchasing land to build a cow shelter, further solidifying the facade.

Deputy inspector general (DIG north) Abhishek Dular, who heads the SIT, said that they have examined all records of the foundation, shedding light on the extensive financial transactions and deceptive practices employed by the accused. We are committed to bring the individuals responsible for this massive cryptocurrency scam to justice, he added.

The scam estimated to be worth ₹2,500 crore was unearthed after Independent legislator Hoshyar Singh raised the issue during the monsoon session of the Himachal assembly.

So far, more than 300 complaints have been received across the state while the SIT has arrested 19 people in the case. However, the key accused Subhash Sharma is absconding and believed to be in Dubai.