The Himachal Pradesh High Court has denied bail to Abhishek Sharma, a key suspect in one of India’s largest cryptocurrency scams. The scam defrauded more than 80,000 investors of nearly $228 million.
Delivering the ruling on Friday, Justice Sushil Kukreja stressed the gravity of the alleged offense, noting its far-reaching economic and societal consequences.
“Economic offenses are considered grave offenses as they affect the economy of the country, and such offenses are to be viewed seriously,” the court observed, as reported by the country’s local media, The Times of India.
India seeks balance between rights and public interest
Sharma, a resident of Una district, has been in custody since October 28, 2023, facing accusations of playing a leading role in a fraudulent network tied to missing prime suspect Subhash Sharma.
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According to the court, initial investigations showed Abhishek Sharma to be one of the top liners in the chain and a close associate of the absconding mastermind.
While acknowledging Article 21 of India’s Constitution, which guarantees speedy trials and protects undertrial prisoners from indefinite detention, Justice Kukreja concluded that the length of Sharma’s custody alone was insufficient grounds for release.
The court emphasised that bail decisions in high-value economic crimes must weigh the larger interest of the public and the state.
The bench also noted that Sharma’s legal team had failed to demonstrate any notable change in circumstances since his earlier bail application was dismissed, reinforcing the court’s decision to keep him in custody pending trial.
The fraud background
The crypto fraud began in 2018 but came to light in September 2023 when investor Arun Singh Guleria filed a complaint at Palampur police station in Himachal Pradesh’s Kangra district.
Guleria alleged that Subhash Sharma and his associates, including Abhishek Sharma, lured investors into platforms such as Voscrow and Hypenext by promising their cryptocurrency investments would double in value.
The operation reportedly ensnared more than 1,000 police personnel across Himachal Pradesh, alongside thousands of civilians from neighboring states.
Investigators say the scheme followed a pyramid-style model, with early participants encouraged to recruit new investors. The accused manipulated cryptocurrency prices to sustain the illusion of profitability.
The accused allegedly funneled the proceeds into shell companies, luxury real estate in Himachal Pradesh, Punjab, Haryana, and Chandigarh, high-end vehicles, and luxury goods.
According to police findings, Abhishek Sharma was instrumental in organising investor gatherings across multiple towns, including Mandi, Kullu, Baddi, Hamirpur, and Chandigarh, to expand the network.
The main accused is still at large
Despite the arrests, the scam’s prime accused, Subhash Sharma, has fled India, complicating the prosecution’s efforts.
A Special Investigation Team (SIT) led by the Deputy Inspector General of the Northern Range, Dharamshala, has been tasked with investigating related cryptocurrency fraud cases across the state.
Police sources believe the fraud’s sophistication, combined with its cross-state reach, highlights the growing complexity of economic crimes in the digital age.
As the court underlined, “The nature and seriousness of an economic offense and its impact on society are always important considerations in such cases.”