ED Arrests Close Aide of Crypto Scam Mastermind, Seizes Rs 72 Lakh
The Enforcement Directorate (ED) has arrested Atul Sood, a close associate of alleged mastermind Subhash Sharma, in connection with the Rs 2,500-crore cryptocurrency scam that surfaced in Himachal Pradesh in 2023.
The case centres on Korvio Coin (KRO), a fictitious cryptocurrency that investigators say was used to lure thousands of investors with promises of high returns.
According to an ED statement, its Shimla Sub-Zonal Office carried out searches at several locations in Chandigarh, Mohali and Zirakpur on 28 October 2026 under the Prevention of Money Laundering Act (PMLA).
The searches led to the seizure of Rs 72 lakh in cash, along with property documents, digital devices and bank account records.
Investigators allege that Sood was closely associated with Sharma and had travelled to Dubai to meet him. He is also accused of arranging conferences and other events for Sharma, even after FIRs had been registered in connection with the alleged fraud.
Following his arrest, Sood was produced before the Special PMLA Court in Shimla, which remanded him to ED custody until 5 November 2026.
Earlier searches and arrests
The ED had previously conducted searches on 13 December 2025 and 15 June 2026 at premises linked to individuals allegedly associated with the cryptocurrency scheme. Those operations resulted in the seizure of documents, digital devices and movable assets valued at around Rs 1.5 crore.
Several other alleged associates of Sharma, including Hem Raj, Sukhdev Thakur, Abhishek Sharma, Milan Garg and Masoom Juneja, have also been arrested in the case.
How the alleged scheme worked
The ED launched its investigation on the basis of FIRs registered by Himachal Pradesh and Punjab Police against Sharma and others.
According to the agency, Sharma and his associates allegedly operated a cryptocurrency-based multi-level marketing scheme through an online platform. Investors were encouraged to put money into Korvio Coin with the promise of assured high returns.
Investigators say the operation followed a Ponzi-style model, with money from new investors allegedly being used to make payments to earlier investors.
The ED has also alleged that some of the money collected from investors was invested in immovable properties. Substantial portions of these transactions were allegedly made in cash, while properties were registered at values significantly below the actual consideration.
Sharma allegedly fled to Dubai after thousands of investors suffered financial losses. The ED said legal proceedings against him have been initiated before the competent authorities, while further investigation in the case continues.
