The Himachal Pradesh High Court has rejected bail for Abhishek Sharma, an alleged suspect involved in a $228 million cryptocurrency fraud case in India.
Summary
- Himachal court denies bail to accused in $228M cryptocurrency fraud case
- Scam duped 80,000 investors via Voscrow, Hypenext doubling money promises
- Court cites public interest over bail despite accused’s custody since Oct 2023
The scam victimized over 80,000 investors across Himachal Pradesh and neighboring states.
In rejecting the bail request on Friday, Justice Sushil Kukreja underlined the seriousness of the economic violation and its effects on society.
The Times of India reports that the court stated that the inquiry showed Sharma was one of the top liners in the chain and a close associate of the main accused, Subhash Sharma.
The primary accused Subhash Sharma has absconded and fled India, leaving his associates to face prosecution.
India’s court weighs constitutional rights against public interest
Justice Kukreja acknowledged that Article 21 of India’s Constitution guarantees speedy trials and prohibits indefinite detention of prisoners that are under trial.
The court ruled that while Sharma has been in custody since Oct. 28, 2023, his detention period alone cannot justify bail for someone “prima facie found involved in an economic offense of huge magnitude.”
“Economic offenses are considered grave offenses as they affect the economy of the country, and such offenses are to be viewed seriously,” the court stated.
The bench emphasized that bail decisions in economic crimes must consider “the larger interest of the public and the state.”
Voscrow platform promised doubled investments
The fraud began in 2018 but surfaced when investor Arun Singh Guleria filed an FIR on Sept. 24, 2023, at Palampur police station.
The victims received virtual currency in exchange for their investments in Subhash Sharma’s platform.
Through websites like Voscrow and Hypenext, the defendants promised investors that their digital currency investments would double their money. More than 1,000 state police officers were duped, according to the investigation.
The probe uncovered a pyramid-style operation where accused individuals organized investor gatherings across Mandi, Kullu, Baddi, Chandigarh, Una, Hamirpur, and Palampur.
Investigators allege that the accused created shell companies and invested fraud proceeds in real estate across Himachal Pradesh, Chandigarh, Punjab, and Haryana. They also purchased luxury items and high-end vehicles using stolen funds.
The fraud mechanism involved manipulating cryptocurrency prices and at the same time recruiting new investors through existing victims.
