Himachal High Court Denies Bail in Rs 500 Crore Crypto Fraud

The Himachal Pradesh High Court on April 30 denied bail to promoter Abhishek Sharma in a crypto multi-level marketing case that investigators say involved losses of about Rs 500 crore and more than 80,000 investors.

Justice Sushil Kukreja delivered the ruling and wrote: “Economic offenses are considered grave offenses as they affect the economy of the country as a whole, and such offenses having a deep-rooted conspiracy and involving huge loss of public funds are to be viewed seriously.” The court found the scale of the alleged fraud and evidence of Sharma’s active role sufficient to justify continued custody. The bench noted that some co-accused had received bail but that fact did not automatically extend to Sharma.

Defense lawyers argued that Sharma had been detained for an excessive period. The court acknowledged protections against indefinite detention but concluded the record of alleged conduct supported denial of bail.

Prosecutors allege the scheme ran across linked platforms named Korvio, Voscrow, DGT, Hypenext and A-Global. Investors were invited to buy virtual tokens with real money on promises of rapid returns, including claims that balances would double. Early payouts are recorded as having created an appearance of legitimacy. Distributions stopped on December 25, 2021, after which promoters shifted operations to Hypenext. Users received partial payments briefly while promoters released a video blaming “technical issues” and asking investors for five more months. Investors were later directed to move funds to A-Global, which did not pay returns.

Investigators tied Sharma to the scheme through backend data analysis, payout records and witness statements. The inquiry found patterns of price manipulation for tokens and alleged laundering of proceeds through real estate developers, shell companies and family bank accounts.

The Enforcement Directorate opened a parallel probe under the Prevention of Money Laundering Act. By December 2025, the agency had executed raids at eight locations in Himachal Pradesh and Punjab, frozen three bank lockers and deposits totaling about Rs 1.2 crore, and seized documents related to real estate transactions, including properties held in proxy names. Several accused reportedly moved to Dubai before formal complaints were filed, prompting lookout notices; one suspect was intercepted at Indira Gandhi International Airport.

One individual identified publicly as a lead promoter, Subhash Sharma, left India in 2023 and is reported to be overseas. The sequence of platform changes, partial payments and eventual collapse left thousands of small investors with frozen token balances and limited options to recover funds.

A Special Investigation Team was formed in 2023 to examine cryptocurrency-related frauds in the region. Authorities continue forensic analysis of transaction records and property documents as the case against Abhishek Sharma moves toward further investigation and potential charges under economic-offense and money-laundering statutes, while agencies work to identify additional beneficiaries and recover assets for victims.