Odisha shuts down ‘Yes World Crypto Token’: Country Head arrested in Rs 200 cr crypto ponzi scam
The scam, estimated to involve more than Rs. 200 crore, has victimised over 8,000 investors in Odisha alone, with a broader reach in Bhubaneswar, Khordha, Bhadrak, Kendrapada, Jagatsinghpur, Keonjhar, and Nayagarh.
Highlights
- The mastermind behind the scam, Sandeep Choudhary, the Country Head of Yes World, has been apprehended in Jaipur
- Yes World was operating a pyramid Ponzi scheme in the guise of crypto coin or token
In a significant breakthrough, the Economic Offences Wing (EOW) of Odisha has uncovered a large-scale Ponzi or money circulation scheme orchestrated by "Yes World Crypto Token." The mastermind behind the operation, Sandeep Choudhary, the Country Head of Yes World, has been apprehended in Jaipur.
Arrest and investigation details
Choudhary, a native of Rajasthan, was arrested on charges filed on 16 October under various sections of the Indian Penal Code, the Prize Chits and Money Circulation Schemes (Banning) Act, the Odisha Protection of Interests of Depositors Act, and the Information Technology Act. Following his evasion and the risk of him fleeing the country, a Look Out Circular (LOC) was issued, leading to his interception on 15 November at Jaipur International Airport while attempting to escape to Dubai.
The EOW team, in collaboration with the Bureau of Immigration, detained Choudhary, subsequently securing a five-day transit remand. Two other key members of Yes World, Basant Kumar Pradhan and Manoj Kumar Patnaik, were also arrested in Bhubaneswar on 16 November.
Extensive scheme impacting thousands
The investigation, initiated based on a complaint by Swagat Kumar Nayak from Puri, revealed that Yes World was operating a pyramid Ponzi scheme in the guise of crypto coin or token. The company, lacking any tangible business or ground activity, relied solely on expanding its downline members with promises of exorbitant returns in a short time.
The scam, estimated to involve more than Rs. 200 crore, has victimised over 8,000 investors in Odisha alone, with a broader reach in Bhubaneswar, Khordha, Bhadrak, Kendrapada, Jagatsinghpur, Keonjhar, and Nayagarh. The scheme, affecting approximately 2.5 lakh members predominantly in northern India, follows the typical Ponzi model, where initial investors are enticed with monetary benefits, encouraging them to recruit more participants.
This revelation underscores the need for stringent measures to curb fraudulent cryptocurrency schemes, protecting unsuspecting investors from falling prey to such scams.
