Indian police have successfully dismantled a large-scale cryptocurrency scam amounting to ₹1,000 crore (approximately $125 million) and apprehended the primary culprits involved in the operation.
Operating since September 2021, the Solar Techno Alliance (STA) presented itself as a cryptocurrency that claimed to offer solar technology services using blockchain technology. The scheme was led by David Gez, a Hungarian national who had visited India multiple times.
Despite its elaborate facade, STA lacked essential authorization, with the RBI or other regulatory bodies not endorsing its activities. Investigations revealed that the STA website was hosted from Iceland, while its operations were confined to India.
To prevent further victimization, the authorities issued an advisory urging the public to avoid investing in MLM/Ponzi schemes promising unrealistic gains. Investors were advised to thoroughly vet the credentials of any company before investing.
The central figure behind the India operations of the fraudulent scheme, Gurtej Singh Sidu, and the Odisha unit lead, Nirod Das, were arrested by law enforcement officials.
The operation, known as STA Crypto Token, operated as a multimedia, pyramid-like scam, targeting victims across various Indian states. The Odisha Economic Offence Wing initiated its investigation into the crypto scam after receiving intelligence reports.
Additionally, the STA Token was used as a purportedly legitimate tender in daily business transactions by members, and it is estimated that over 10,000 people from Odisha had become involved in the scheme.
The scope of the Ponzi scheme extended to more than 2 lakh members nationwide.
