Odisha Police busts Rs 1,000 crore crypto scam. What we know so far
Odisha Police's Economic Offence Wing made a significant breakthrough on Monday (August 7) by dismantling a company responsible for orchestrating a crypto-ponzi scheme valued at more than Rs 1,000 crore. Two of the main culprits behind this fraudulent operation have been apprehended.
Unraveling the scam
The elaborate ponzi scheme operated under the name STA Token (Solar Techno Alliance), allegedly targeting individuals across various regions of the country, including Jharkhand, Delhi, and Rajasthan. Victims were encouraged to invest substantial sums of money into the STA Crypto Token.
The Solar Techno Alliance (STA) initially emerged as a YouTube channel in September 2021, followed by an apparently legitimate website. The deceptive cryptocurrency undertook several measures to present itself as a typical crypto token.
The authorities confirm that STA lacked authorization from the RBI or any legitimate entity for collecting deposits. Instead, it illicitly operated a pyramid scheme camouflaged as a cryptocurrency token.
Police reports indicate that over 10,000 individuals from Odisha fell prey to this deceitful scheme, resulting in substantial financial losses.
According to JN Pankaj, IG EOW, these scammers enticed a significant number of people into investing in crypto coins, amassing a substantial fortune. Subsequently, the victims were coerced into expanding the network by recruiting more participants.
Extravagant events with clebrity attendees
The fraudulent group went a step further by hosting extravagant events and rewarding higher-level members based on their accomplishments. Most recently, STA organized an opulent gathering at a luxury hotel in Goa, as confirmed by police statements.
The event drew the attendance of over a thousand high-level members from various states, including notable figures from Bollywood.
What gave them away?
Prompted by information from multiple sources, the police initiated an investigation into the crypto-driven ponzi scheme operated by STA in Odisha. This fraud had taken root particularly in districts such as Bhadrak, Balasore, Bhubaneswar, Mayurbhanj, Jajpur, Kendrapara, and Keonjhar.
The police statement unveiled that the culprits orchestrated their activities within these regions, leveraging certain upline associates.
Authorities also observed a pattern in the travel movements of the main accused, Gurtej Singh Sidhu, the India head of STA Crypto Token. Sidhu frequently changed his whereabouts, traveling to destinations such as Goa, Lonavala, Mumbai, Delhi, Faridkot, Bhatinda, Hanumangarh, and Sri Ganganagar.
Arrests and legal actions
The operation culminated in the apprehension of Gurtej Singh Sidhu and his partner Nirod Das, who served as the Odisha head of STA.
Sidhu, originally from Faridkot, Punjab, was arrested in Sri Ganganagar, Rajasthan. Meanwhile, Das was apprehended in Bhadrak. Singh appeared in a Sri Ganganagar court, which issued a seven-day transit remand for him.