“Odisha (EOW) has busted a very big multimedia, pyramid structure, ponzi scam…We have got to know that people have invested more than ₹1,000 crores in this scam across India. Around 10,000 people from Odisha are also there. A lot more people are involved from the Bihar, Delhi, Jharkhand, Rajasthan, MP, and Haryana sides. Approximately 2 lakh people are members of this,” Economic Offence Wing IG, JN Pankaj told ANI.

The mastermind behind the crypto scam was frequently changing his location in places like Goa, Lonavala, Mumbai, Delhi, Faridkot, Bhatinda, Hanumangadh and Sri Ganganagar. The movement of the main culprit was constantly tracked by the DSP Sasmita Sahoo.

The Odisha Economic Offence Wing got the first lead of the crypto scam from intelligence wing. It  was informed that the cryptocurrency-based Ponzi scheme was being run in Odisha, especially in Bhadrak, Balasore, Bhubaneswar, Mayurbhanj, Jajpur, Kendrapada and Keonjhar districts.

Investigation revealed that STA through some up-line members was very active in these districts and they were also using propaganda tools to persuade people to join this scheme and earn huge money.

What is STA Token, the ₹1,000 crore cryptocurrency fraud?

He also said that the members had started using the STA Token as legal tender in their day-to-day business. It is estimated that more than 10,000 people from Odisha have already been members of this scheme.

This Ponzi scheme has more than 2 lakh members (Pan India) mainly in the states like Punjab, Rajasthan, Bihar, Jharkhand, Haryana, Delhi, Madhya Pradesh, Maharashtra, Odisha and Assam, the official informed.

The Solar Techno Alliance (STA) was launched in September 2021. From youtube channel, to an authentic-looking website, the fraud cryptocurrency opted for all possible measures to deceive people as a generic crypto token. Its social media accounts claimed it to be a “one-stop Solar Technologies service that enables users to order anything they like from nearest farmers in shortest time using blockchain technology.

STA token conduced extravagant celebrations, gave membership bonus to expand network

The fraud network also used to organise extravagant celebrations and also give bonuses to up-line members based on their performance. Last week, STA had a grand celebration in a luxurious star hotel/banquet hall in Goa, police told ANI.

The meeting was attended by more than one thousand up-line members from across the states. These members who were responsible for adding members got bonuses and vaiour royalties for adding new members. Its leadership is named Pearl, Ruby, Emerald, Topaz, Diamond, Pink Diamond, Blue Diamond, Black Diamond, The Hope Diamond and Koh-I- Noor depending on the number of down-line members under them and STA coin holdings, he added.

There are also youtube channels and publicity programs at various places to spread membership. They use fancy hotels, motivational speakers, music, lunch/dinner, etc. in such meetings to brainwash future members.

The official said they also run several YouTube channels for publicity and tutoring the new members. Members are promised that they will earn $20 to $3000 per day if they join this scheme and add more members under them.

Major red flags in STA

Despite all the pomp and show lure members and customers, there were many basic essential things STA lacked. The police found that the STA is not authorised by RBI or any other authorities to collect deposits. Another thing that was found fishy by the police in its primitive investigation was that the STA website is hosted from Iceland but its business/activity is targeted/ limited to India. It is headed by one David Gez a young Hungarian (Europe) national who has visited India multiple times, he added.

To avoid any further fraud by the STA fraudsters, an advisory has been issued to the general public. People are advised to not inves ttheir muny in such such MLM/Ponzi schemes which show dreams of becoming a millionaire in an unrealistically short time. The advisory also advised investors and celebrities to invest their money wisely only after checking the credentials of the company.

Updated: 08 Aug 2023, 10:59 AM IST