The Ponzi scheme centered around a cryptocurrency project named STA Crypto Token, exploited the allure of solar technologies and blockchain innovation.
As reported by The Indian Express on Aug. 8, the fraudulent scheme revolved around the STA Crypto Token, which purported to merge the potential of solar technologies with the blockchain revolution.
However, investigations reveal that the project was a smokescreen for a Ponzi scam that targeted unsuspecting investors.
The scam’s success was staggering, with a reported theft of Rs 1,000 crore (10 billion rupees, or $120 million) from victims. Shockingly, around 200,000 individuals, including 10,000 from Odisha alone, fell prey to the scam’s enticing facade.
The Economic Offense Wing of the Odisha Police managed to apprehend two key figures linked to the STA Token scam: Gurtej Singh Sidhu, the mastermind behind the project, and his associate, Nirod Das.
Notably, Sidhu evaded capture by constantly relocating between cities, but relentless law enforcement efforts ultimately led to his arrest.
Jai Narayan Pankaj, Inspector-General of the Economic Offense Wing, revealed that Sidhu had been a target of pursuit for several days.
Investigations have revealed that the Ponzi scam operated across various districts without the necessary approvals from the Reserve Bank of India or other regulatory bodies.
The so-called crypto token, touted as a revolutionary endeavor, was, in reality, a multi-level marketing (MLM) scheme camouflaged in eco-friendly promises.
The scam’s architects went to great lengths to promote their deceit, orchestrating extravagant events at luxury hotels featuring guest speakers and musical performances to attract unwitting investors.
Although the project’s website was hosted in Iceland, the Ponzi scheme exclusively targeted victims in India. This highlights the scheme’s localized impact and serves as a stark reminder of the reach of cybercrime in the digital age.
The STA Crypto Token Ponzi scheme is not an isolated incident in India’s cryptocurrency landscape. Earlier this year, nearly $12 million associated with the HPZ token project was frozen by authorities.
Additional instances of crypto fraud, such as Morris Coin, GainBitcoin, and a Karnataka-based scam, have also been identified, underscoring the need for heightened vigilance and regulatory oversight in the cryptocurrency sector.
