Indian authorities have apprehended eight individuals in connection with a large-scale illegal cryptocurrency scheme that has been operating since 2018, defrauding over 100,000 people of USD 300 million or approximately IDR 4.6 trillion (assuming an exchange rate of IDR 15,648 per US dollar).
Four out of the eight arrested individuals are law enforcement officers, according to findings from the Special Investigation Team (SIT). Among the victims of this cryptocurrency scam are 5,000 government employees and around 1,000 police personnel.
The fraudulent activity, centered around a local cryptocurrency named Korvio Coin (KRO Coin), was discovered in late September, with investigations suggesting it may have started as early as 2018.
Operating through fake websites, the scammers targeted unsuspecting victims with investment schemes involving Korvio Coin, eventually expanding to include other cryptocurrencies.
Local police received a total of 56 complaints regarding cryptocurrency fraud between 2021 and 2023. Following these reports, several institutions, including the Directorate of Enforcement, collaborated with regional police teams to launch an extensive investigation led by the SIT.
In late October, hundreds of searches were conducted, resulting in the discovery of approximately 250,000 identity cards linked to the suspects. According to the investigation, over 100 individuals each profited USD 240,000 or IDR 3.7 billion from the fraud, while another 200 individuals earned around USD 120,000 or IDR 1.8 billion each.
Despite the arrest of 18 individuals so far, the alleged mastermind of the operation, Subhash Sharma, remains at large. Conversely, authorities have identified and seized several properties associated with Sharma. The Directorate of Enforcement is also scrutinizing the activities of five women suspected of acting as agents or promoters for Sharma.
