EOW Odisha unearths the biggest Crypto-Ponzi scam of India

EOW arrested the India head of one “STA Crypto token” identified as Gurtej Sigh Sidhu, 40 from Sri-Ganganagar, Rajasthan. He is a native of Faridkot, Punjab.

He was produced before local court in Sri-Ganganagar. The court granted 7 days transit remand. He was brought to Odisha and will be produced before OPID Court, Cuttack. He was frequently changing his location in places like Goa, Lonavala, Mumbai, Delhi, Faridkot, Bhatinda, Hanumangadh and Sri Ganganagar.

A team of EOW led by DSP Sasmita sahoo was tracking his movement. EOW also arrested one Nirod Das of Bhadrak who is the Odisha head of STA.

This refers to EOW case no 22/2023 U/S 420/467/468/471/120-B IPC, 4/5/6 of PCMS Act. After getting intelligence from various sources that a crypto currency based Ponzi scheme/scam is being run in Odisha especially in Bhadrak, Balasore, Bhubaneswar, Mayurbhanj, Jajpur, kendrapada and Keonjhar districts, an enquiry was conducted.

During enquiry it was found that STA through some upline members are very active in these districts and they have been using various propaganda tools to persuade people to join in this scheme and earn huge money in a very short time.

It was found that members have started using the STA token like a 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 scheme/scam 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.

STA (Solar Techno Alliance) was launched in September 2021. In its website and social media accounts it claims to be a “one stop Solar Technologies service that enables users to order anything they like from the nearest farmers in shortest amount of time using block chain technology”.

But during investigation it was noticed that:

1. STA is not authorized by RBI or any other authorities to collect deposits.

2. STA runs a huge Ponzi (MLM/ Pyramid) scheme in the garb of Crypto Token. STA uses the socially popular terms like green energy, solar technology etc. to mask its Crypto-Ponzi scam.

3. STA website is hosted from Iceland but its business/activity is targeted/ limited to India.

4. STA is headed by one David Gez a young Hungarian (Europe) national who has visited India multiple times.

5. Gurtej singh Sidhu is said to have reached the top level of STA’s Pyramid structure (Kohinnor leadership in STA language) and he heads/runs the scheme/ scam in India. He also claims to be a Crypto currency expert, MLM Guru, Life coach and a motivational speaker.

6. Both David Gej and Gurtej sidhu have travelled to many places in India including Odisha and have attended various STA Programs.

7. STA conducts several publicity programs at various places to spread its membership. They use fancy hotels, motivational speakers, music, lunch/dinner etc. in such meetings to brainwash future members. They also run several YouTube channels for publicity and tutoring the new members.

8. Members are promised that they will earn $20 to $3000 per day if they join this scheme and add more members under them.

9. Members get bonus and various royalties for adding new members. Its leaderships are named like Pearl, Ruby, Emerald, Topaz, Diamond, Pink Diamond, Blue diamond, Black Diamond, The Hope Diamond and Koh-INoor depending on the number of down-line members under them and
STA coin holdings.

10. Like any other MLM/Ponzi scheme, members initially do get some monetary benefits which tempt them to add more and more members under them.

11. Transactions (credit & debit) of more than Rs 30 crore was noticed in the bank account of Nirod Das, Odisha head of STA. Also there is a huge cash deposits in his accounts which indicates that lots of black money is routed/ parked in this scam. All the accounts have been frozen.

12. Total money involved (Pan India) in STA is estimated to be more than Rs 1000 Crores.

13. Gurtj and David are always seen/shown using luxurious life style like star hotels, Expensive cars, fancy cloths, surrounded by Bouncers, Hero’s welcome in meeting etc.

14. STA’s members greet each other saying “Jay STA”. Last week STA had a grand celebration in a luxurious star hotel/ banquet hall in Goa.

More than one thousand up-line members including many from Odisha attended this meeting. Film star Govinda was the chief guest of this meeting/ celebration. Govinda also released some video promoting/endorsing STA.

Advisory to people: 

1. All are advised to not to invest their hard earned money in such MLM/Ponzi scheme which shows you the dream of becoming millionaire in unrealistically short time. You may get some initial benefits but ultimately you will use a huge amount.

2. There is plethora of good and legal investment options, people should try them.

3. In such scheme, not only you suffer but you make many others suffer by adding them as your down-line members.

Advisory to Film stars/ celebrities:

They are advised to check the credentials of the party/ company/organization before endorsing/ promoting such scheme/ program.