Over 1,000 Police Officers Ensnared in Cryptocurrency Scam

More than 1,000 police officers in India have been implicated in a cryptocurrency scam that has reportedly duped 250,000 victims and siphoned off approximately $235 million.

The scam promised investors significant returns on investments in two non-existent cryptocurrencies, Korvio Coin (KRO) and DGT Coin, according to The Times of India. Victims, lured by the allure of the “next Bitcoin,” were deceived by fake websites displaying manipulated prices for these fictitious currencies. They were also enticed to recruit others, with the money collected from these newcomers used to pay older investors, a model resembling both a Ponzi scheme and multi-level marketing fraud (MLM).

Many police officers from the Mandi district of Himachal Pradesh reportedly lost millions of rupees to these con artists. While some officers accepted their losses and moved on, others took an active role and became promoters of the scam. Using their stature within local communities, these promoters duped more unsuspecting victims.

Police sources told Tribune India, “It’s a massive scam involving millions. Two arrested suspects confessed to owing $47 million to investors deceived by this cryptocurrency fraud.”

Sanjay Kundu, the Director-General of Police in Himachal Pradesh, asserted in a press conference that everyone involved, both officers and non-officers, would be held accountable under the law. “We will apprehend all violators. The investigation is proceeding in a structured and strategic manner.”

Earlier this month, a Special Investigation Team (SIT) carried out raids at 35 locations across seven districts and one police district in Himachal Pradesh. The raids yielded evidence, including property records, documents, electronic devices, and mobile phones. These operations resulted in the arrest of seven individuals.