EOW Odisha claims to have unearthed a massive cryptocurrency-based Ponzi scam

The Economic Offence Wing (EOW) of Odisha police on August 7 claimed to have unearthed one of the largest cryptocurrency-based Ponzi schemes involving ₹1,000 crore and two lakh people.

The EOW arrested Gurtej Singh Sidhu (40), the India head of one STA (Solar Techno Alliance) Crypto Token, from Sri-Ganganagar, Rajasthan.

Sidhu, a native of Faridkot, Punjab, was produced before local court in Sri-Ganganagar which granted seven days transit of remand. He was brought to Odisha and would be produced before Odisha Protection of Interests of Depositors (OPID) Court, Cuttack.

Launched in 2021, the STA (Solar Techno Alliance) Crypto was operating through website and social media accounts. It was said to be a one stop solar technologies service that enabled users to order anything they like from the nearest farmers in shortest amount of time using block chain technology, says EOW in a statement.

EOW Chief Jai Narayan Pankaj said, “not authorized by Reserve Bank of India or any other authorities to collect deposits, the STA runs a huge Ponzi multi-level marketing scheme in the garb of crypto token. STA uses the socially popular terms like green energy and solar technology to mask its Crypto-Ponzi scam.”

The STA website was hosted from Iceland. The STA is headed by one David Gez, a young Hungarian (Europe) national who has visited India multiple times, while Sidhu is said to have reached the top level of STA’s Pyramid structure (Kohinnor leadership in STA language), says EOW.

“Like any other MLM scheme, members initially got some monetary benefits which tempted them to add more and more members under them. Transactions (credit and debit) of more than Rs 30 crore was noticed in the bank account of Nirod Das, Odisha head of STA,” Mr. Pankaj informed.

He said, “there was huge cash deposits in his (Das) accounts which indicates that lots of black money was routed or parked in this scam. All the accounts were frozen. Total money involved (Pan India) in STA was estimated to be more than Rs 1000 Crores.”

Members were promised that they would earn US Dollar 20 to 3000 per day if they would this scheme and would add more members under them. Besides, they were promised to get bonus and various royalties for adding new members.

Odisha EOW says Sidhu and David were always seen having luxurious life style which included possession of expensive cars, fancy cloths, surrounded by bouncers and hero’s welcome in meeting.

“At a celebration held in a luxurious star hotel in Goa last week, more than 1000 up-line members including many from Odisha were present. Film star Govinda was the chief guest of that celebration. Govinda had also released some video promoting or endorsing the STA,” the EOW investigation revealed.

After getting intelligence from various sources that a crypto currency-based ponzi scheme was being run in Odisha especially in Bhadrak, Balasore, Bhubaneswar, Mayurbhanj, Jajpur, Kendrapada and Keonjhar districts, the EOW got an enquiry conducted on STA.

“It is estimated that more than 10,000 people from Odisha are members of this scheme. This scheme has more than two lakh members in India, mainly from the states like Punjab, Rajasthan, Bihar, Jharkhand, Haryana, Delhi, Madhya Pradesh, Maharashtra, Odisha and Assam,” said Mr. Pankaj.