Crypto Ponzi Scam Valued At Rs 1,000 Cr Uncovered By Odisha Police: All You Need To Know

The scam involved the issuance of STA tokens, falsely represented as legal tender for daily transactions.

The scam's operations spanned beyond India, with STA's website hosted from Iceland, but its business activity was limited to the country.

The Odisha Police's Economic Offence Wing (EOW) has announced a significant breakthrough in its investigation, uncovering a Crypto Ponzi scam valued at Rs 1,000 crore. The EOW's recent operation led to the arrest of Gurtej Singh Sidhu, the Indian head of 'STA Crypto token,' a Ponzi firm located in Sri Ganganagar, Rajasthan. Hailing from Faridkot, Punjab, Gurtej Singh Sidhu was nabbed after the EOW's diligent efforts to track him across various locations, including Goa, Lonavala, Mumbai, Delhi, Faridkot, Bhatinda, Hanumangadh, and Sri Ganganagar. Nirod Das of Bhadrak, the Odisha head of STA, was also apprehended by the EOW in connection with the case.

The investigation was initiated based on intelligence received from several sources, indicating the existence of a cryptocurrency-based Ponzi scam operating in Odisha, particularly in Bhadrak, Balasore, Bhubaneswar, Mayurbhanj, Jajpur, Kendrapada, and Keonjhar districts. The EOW discovered that STA, through its upline members, actively promoted the fraudulent scheme in these regions, using various persuasive tactics to lure people into joining and promising them substantial profits within a short period.

The scam involved the issuance of STA tokens, falsely represented as legal tender for daily transactions. It is estimated that over 10,000 individuals in Odisha had already fallen victim to this scheme. Beyond Odisha, the Ponzi scam boasted more than two lakh members across states such as Punjab, Rajasthan, Bihar, Jharkhand, Haryana, Delhi, Madhya Pradesh, Maharashtra, Odisha, and Assam.

Solar Techno Alliance (STA) was launched in September 2021, claiming to provide solar technology services using blockchain technology. However, during the course of the investigation, it was revealed that STA lacked authorisation from the Reserve Bank of India (RBI) or any other regulatory authority to collect deposits. In reality, STA was operating an extensive Ponzi scheme disguised as a Crypto Token, exploiting terms like green energy and solar technology to mask its fraudulent activities.

The scam's operations spanned beyond India, with STA's website hosted from Iceland, but its business activity was limited to the country. The helm of the operation was held by David Gez, a young Hungarian national who had visited India multiple times, and Gurtej Singh Sidhu oversaw the Indian operations.

The EOW has issued a statement warning potential victims that STA members were promised lucrative earnings ranging from $20 to $3,000 per day if they joined the scheme and recruited more members. With these recent arrests, the authorities hope to bring the perpetrators to justice and prevent further financial harm to innocent individuals caught in the web of this crypto Ponzi scam.

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