Shimla, Oct 31 — The Enforcement Directorate (ED) conducted search operations at various locations across Chandigarh, Mohali and Zirakpur in connection with a Rs 500 crore cryptocurrency fraud involving Korvio Coin (KRO) and seized property documents and Rs 72 lakh in cash, an official said on Saturday.
The searches were conducted by ED's Shimla Sub-Zonal Office on October 28 under Section 17(1) of the Prevention of Money Laundering Act (PMLA), 2002, the official said in a statement.
During the search operation, various incriminating documents, including property-related documents, multiple digital devices and records pertaining to bank accounts, along with cash amounting to Rs 72 lakh, were seized.
The investigation revealed that Atul Sood, a close aide of Subhash Sharma, the alleged mastermind behind the fraudulent cryptocurrency scheme that caused losses amounting to crores of rupees to investors, had travelled to Dubai to meet Subhash Sharma and was involved in arranging conferences and other events for him.
These activities were carried out even after the registration of FIRs in connection with the fraudulent scheme, the ED said.
During the ED's search operation, Atul Sood was arrested and produced before the Special PMLA Court in Shimla on October 29, which granted his custody till November 5.
Earlier, the ED had conducted search operations on December 13, 2025, and June 15, 2026, at the premises of various individuals associated with the fictitious cryptocurrency scheme, resulting in the seizure of incriminating documents and digital devices along with movable assets valued at Rs 1.5 crore.
In connection with the case, various associates of Subash Sharma namely Hem Raj, Sukhdev Thakur, Abhishek Sharma, Milan Garg and Masoom Juneja were arrested.
The charge sheet, along with the supplementary charge sheet, against them has been filed before the Special Court in Shimla, the ED added.
The ED investigation was initiated on the basis of FIRs registered by the Himachal Pradesh and Punjab Police against Subhash Sharma and others.
"The investigation revealed that Subhash Sharma, in connivance with his associates, including Hem Raj, Sukhdev Thakur, Abhishek Sharma and others, operated a cryptocurrency-based multi-level marketing (MLM) scheme through an online platform, inducing investors to invest in Korvio Coin (KRO) by promising assured high returns," the ED said.
The scheme functioned on a Ponzi model, wherein funds received from new investors were used to pay earlier investors.
Recovered digital data indicated that more than 2.48 lakh users were affected by the fraud, involving transactions exceeding $219 million and estimated investor losses of around Rs 500 crore.
"Investigation has revealed that the funds collected from new investors were predominantly received in cash and delivered to the leaders of the respective teams, from where they were ultimately routed to Subhash Sharma and his aides, including Vijay Kumar Juneja and Masoom Juneja," the ED said.
"It was also revealed that a portion of the funds collected from investors was allegedly utilised for acquiring immovable properties, with substantial consideration being paid in cash and registered values being significantly lower than the actual consideration," the ED added.
A smaller portion of the funds received from new investors was routed through multiple bank accounts, fictitious firms and intermediaries and were partly converted into cryptocurrency to conceal their origin and movement, the statement said.
Subhash Sharma, the mastermind behind the fictitious cryptocurrency scam, fled to Dubai after duping thousands of investors, leaving them to suffer substantial financial losses.
The ED has already initiated legal proceedings against him before the competent authorities in connection with the said case.