Indian Court Denies Bail in $240M Crypto Fraud Affecting 80,000 Investors

An Indian high court has denied bail to Abhishek Sharma, a central figure in a $240 million cryptocurrency fraud that defrauded over 80,000 investors between 2018 and 2023. The court, led by Justice Sushil Kukreja of the Himachal Pradesh High Court, rejected the bail application, citing the severity of the offense and the significant economic harm it caused [2]. Sharma has been in custody since October 2023, but the court found no compelling reason to alter his status, noting no new evidence to justify release [2].

The fraud operated through two platforms, voscrow and Hypenext, where investors were enticed with promises of high returns and misleading assurances that their funds would be doubled [2]. The scheme was uncovered following a complaint filed by Arun Singh Guleria with the Palampur police in September 2023. Investigations revealed the operation used a Ponzi-like model, luring new investors while fabricating cryptocurrency price trends to maintain the illusion of legitimacy. Over 1,000 police officers in the state were among the victims [2].

The court emphasized that the scale of the offense, described as a large-scale economic crime, disqualified Sharma from bail, despite the constitutional guarantee of a speedy trial under Article 21 [2]. The decision reflects a growing judicial caution toward cryptocurrency-related crimes and underscores the system’s intent to treat such fraud with the same seriousness as traditional financial crimes [2].

The denial of bail is expected to prolong the legal process, as it removes the possibility of a faster resolution through release pending trial. The court’s stance signals increased scrutiny and a stronger regulatory approach to crypto activities in India. Although the ruling has not led to immediate market disruptions or asset freezes, it raises concerns about the integrity of the crypto ecosystem and the need for enhanced investor protections [2].

The case has drawn significant public and regulatory attention, highlighting the vulnerabilities in the digital asset space and the potential for exploitation by fraudulent actors. With all suspects except the primary accused, Subhash Sharma—who is believed to have fled the country—already arrested, the investigation continues to trace the illicit funds through shell companies and high-value purchases [2].

This ruling may serve as a precedent for future large-scale crypto fraud cases in India, reinforcing the judiciary’s commitment to accountability in digital finance. The absence of public statements from industry leaders or government entities suggests that the case is being handled primarily through legal channels, with no immediate policy shifts or regulatory responses announced [2].

Source: [2]title2.............................(https://www.mitrade.com/au/insights/news/live-news/article-3-1026869-20250810)