The Economic Offences Wing (EOW) of the Odisha police in India took decisive action against a cryptocurrency-centered Ponzi scheme exceeding Rs 1000 crore($120 million) in value. As per a regional news source report, Gurtej Singh Sidhu and Nirod Das have been arrested for their participation in this deceitful venture. The disclosed information indicates that STA token functioned as a Ponzi scheme, using earnings from new investors to support the returns of earlier investors.
Indian EOW discovers crypto ponzi scheme
In an official statement, the EOW had initiated a case after receiving intelligence from diverse sources about a cryptocurrency-linked Ponzi scheme operating in Odisha. They subsequently conducted an inquiry based on this information.
The investigation revealed that STA, facilitated by certain upline members, displayed significant activity in these districts, employing various persuasive tactics to encourage individuals to participate in the scheme with promises of substantial earnings in a short span, as conveyed by the EOW. These members have even begun using the STA token as an accepted currency for everyday transactions. The assessment found that over 10,000 individuals from Odisha were part of this initiative.
On its official website and social media platforms, STA presents itself as an all-inclusive service for Solar Technologies, streamlining the process for users to make quick purchases from local farmers using blockchain technology.
However, the investigation revealed that STA lacks authorization from the RBI or other regulatory bodies to accumulate deposits. It operates a vast Ponzi camouflaged as a Crypto token venture, exploiting terms like green energy and solar technology, the EOW stated.
As of July 13, a report highlighted that cybercriminals and fraudsters managed to steal nearly $450 million in digital assets during the first half of 2023. Although this sum appears substantial, it’s a 77% decrease from the figures in H1 2022, as outlined in a Chainalysis report.
