Bail Denied in Massive Crypto Fraud Case

The Himachal Pradesh High Court has refused bail to Abhishek Sharma, a key suspect in a massive $228 million cryptocurrency scam that defrauded more than 80,000 investors across Himachal Pradesh and neighboring states.

In a ruling on Friday, Justice Sushil Kukreja cited the serious nature of the economic offense and its widespread impact on society as grounds for rejecting Sharma’s bail request.

Linked to Prime Accused Who Fled India

According to the Times of India, the court’s inquiry found Sharma to be a “top liner” in the scam hierarchy and a close associate of the prime accused, Subhash Sharma. Subhash, who allegedly masterminded the scheme, has absconded and fled India, leaving his associates to face prosecution.

The court’s findings pointed to Sharma’s direct involvement in facilitating the fraud through high-level operations, making him an integral part of the scheme.

Balancing Rights and Public Interest

Justice Kukreja acknowledged Article 21 of the Indian Constitution, which guarantees the right to a speedy trial and prohibits indefinite detention of under-trial prisoners. However, the bench ruled that mere length of custody — Sharma has been in jail since October 28, 2023 — does not justify granting bail for an offense of such “huge magnitude.”

“Economic offenses are grave crimes as they impact the national economy and must be viewed seriously,” the court stated, adding that bail decisions must prioritize “the larger interest of the public and the state.”

How the Voscrow Scam Operated

The fraudulent operation, which began in 2018, came to light when investor Arun Singh Guleria filed an FIR on September 24, 2023, at Palampur police station.

Victims were persuaded to invest in Subhash Sharma’s platforms, including Voscrow and Hypenext, with promises that their investments in digital currency would double in value. In return, they received virtual tokens that held no real-world guarantee.

Shockingly, more than 1,000 state police personnel were among those duped.

Pyramid Scheme and Price Manipulation

Investigations revealed that the operation followed a pyramid-style recruitment model, where early investors were encouraged to bring in new participants. Promotional events were organized in cities and towns including Mandi, Kullu, Baddi, Chandigarh, Una, Hamirpur, and Palampur.

The accused allegedly manipulated cryptocurrency prices to inflate returns and lure in more victims.

Money Laundering and Asset Purchases

Authorities allege that the accused laundered proceeds through shell companies and invested heavily in real estate across Himachal Pradesh, Chandigarh, Punjab, and Haryana. Luxury vehicles, high-end goods, and lavish lifestyles were reportedly funded directly from the scam’s profits.

Police believe this combination of market manipulation, aggressive recruitment, and asset laundering allowed the fraud to grow to staggering proportions before its eventual exposure.

Outlook on the Case

With the prime accused still at large and multiple high-profile suspects facing trial, the case underscores India’s growing challenges in regulating cryptocurrency markets and prosecuting large-scale financial crimes.

The rejection of bail sends a strong signal that courts will take a tough stance on economic offenses that undermine public trust and cause widespread harm.