Himachal Crypto MLM Scam Investigation: 69 of 76 Accused Released on Bail

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Himachal Pradesh’s cryptocurrency and multi-level marketing (MLM) fraud investigation continues to face delays, with 69 of 76 arrested individuals granted bail as of June 2026.

Case Background and Scale

The case, which emerged publicly in 2023, involves allegations of a scheme that reportedly attracted over 250,000 participants and facilitated investments totaling approximately ₹1,740 crore. Despite the scale of the operation, trial proceedings for any defendant have not yet commenced.

Investigation and Key Findings

The Enforcement Directorate (ED) initiated its probe in 2024 following multiple complaints, with the Special Investigation Team (SIT) identifying a network that expanded significantly between 2018 and 2022. Participants were assigned unique digital identifiers, incentivizing recruitment of new members to generate additional accounts. This structure enabled exponential growth, with some investors using the identities of relatives and acquaintances to enroll in the scheme.

Complaints and Victim Distribution

A dedicated helpline established in 2024 received nearly 500 complaints, primarily from residents of Kangra, Mandi, Hamirpur, and Una districts in Himachal Pradesh, alongside victims in Phagwara, Punjab. Investigators noted that a portion of the investments originated from compensation payments for land acquired for infrastructure projects.

Legal Proceedings and Charge Sheets

The SIT has filed charge sheets against 76 individuals based on 280 complaints, with additional cases still under review. The alleged cryptocurrency, initially valued at ₹70, was promoted to reach prices between ₹800 and ₹4,000. Promoters claimed the digital asset would be traded exclusively in US dollars, offering high returns.

ED’s Categorization of Participants

The ED categorizes participants into three groups: those with the highest financial gains, local recruiters, and victims who invested in the scheme. While seven accused remain in custody after bail applications were denied, the majority have been released pending trial.

Key Figures and Ongoing Efforts

The ED has identified Subhash Sharma as the alleged mastermind, who is reportedly evading authorities in Dubai. Efforts to trace his whereabouts and track illicit funds continue. The agency estimates the proceeds of crime at ₹500 crore, though investigators note that early-phase returns to some investors reduced the perceived fraud amount.

Expert Insights and Regulatory Implications

A cybersecurity expert and former IPS officer highlighted that cryptocurrency-based MLM schemes often exploit promises of unrealistic returns and referral-based earnings. He emphasized the importance of verifying regulatory compliance, business models, and risk factors before engaging with digital investment platforms. The case has prompted scrutiny of regulatory frameworks for decentralized financial schemes, with authorities urging caution amid rising instances of digital fraud.

“Cryptocurrency-based MLM schemes often exploit promises of unrealistic returns and referral-based earnings. He emphasized the importance of verifying regulatory compliance, business models, and risk factors before engaging with digital investment platforms.”

Conclusion

The ongoing investigation into Himachal Pradesh’s cryptocurrency and MLM fraud highlights the complexities of regulating decentralized financial schemes. With significant financial stakes and widespread participation, the case underscores the need for heightened vigilance and robust regulatory measures to prevent similar frauds in the future.