Indian court denies bail in $240M crypto fraud affecting 80,000 investors

An Indian high court has denied bail to Abhishek Sharma, a central suspect in a $240 million cryptocurrency fraud that impacted over 80,000 investors [1]. The court emphasized the seriousness of the offense and its broader societal implications, ruling that bail would be inappropriate given the scale of the fraud and the vulnerability of the victims [2]. Sharma, who orchestrated the scam through fraudulent platforms, remains in custody as the judicial process continues [1].

The scheme reportedly lured investors with deceptive marketing and exaggerated promises of returns, resulting in widespread financial loss [2]. The denial of bail reflects a firm judicial stance on ensuring that key figures in major financial crimes remain available for ongoing investigation and prosecution [1]. The court’s decision also highlights the judiciary’s increasing role in addressing the unique risks posed by the fast-moving and often opaque cryptocurrency market [2].

Regulators and law enforcement have long warned about the risks of unregulated digital assets, and this case underscores the growing challenges in enforcing accountability within the sector [2]. Despite the massive scale of the fraud, no significant institutional investors were involved, and there have been no notable impacts on major cryptocurrency assets like Bitcoin or Ethereum [1]. Analysts suggest that the increased scrutiny from courts may continue without immediate changes in regulatory policy [1].

The court’s decision has reinforced calls for greater transparency and accountability in the crypto space [1]. Justice Sushil Kukreja, who presided over the case, stated that the societal impact and severity of the crime necessitated the denial of bail [2]. This aligns with broader global trends where courts are beginning to play a more active role in safeguarding investors in digital markets [2].

While the case does not indicate a systemic flaw in India’s financial infrastructure, it does highlight the urgent need for stronger consumer protections and clearer oversight mechanisms. The absence of institutional exposure in this case also suggests that the instability caused by such fraud is being contained, at least for now [1]. As the legal process unfolds, the outcome could set a precedent for handling large-scale cryptocurrency-related fraud in India [2].

Source:

[1] AInvest. (2025, July 13). Indian Court Denies Bail in $240M Crypto Fraud Affecting 80,000 Investors. https://www.ainvest.com/news/indian-court-denies-bail-240m-crypto-fraud-affecting-80-000-investors-2508/

[2] AInvest. (2025, July 2). Indian Court Denies Bail in $240M Crypto Fraud Case Over Societal Impact and Gravity of Offense. https://www.ainvest.com/news/indian-court-denies-bail-240m-crypto-fraud-case-societal-impact-2508/