Biggest Crypto-ponzi scam of India busted in Odisha - TONTUF Money

The biggest crypto-ponzi scam of India was busted in Odisha on August 7, 2023. The scam was being operated by a company called STA Crypto Token, and it is estimated that investors lost more than Rs 1,000 crore (about $130 million) in the scam.

The scam worked by promising investors high returns on their investments. Investors were told that they could earn up to 300% profit in just a few months. However, the company was actually using the money from new investors to pay off the old investors. This is a classic Ponzi scheme, and it is eventually unsustainable.

The scam was able to attract so many investors because it was promoted by Bollywood actor Govinda. Govinda appeared in a promotional video for STA Crypto Token, and he told viewers that the company was a "safe and secure investment." However, Govinda has since distanced himself from the scam, and he has said that he was not aware of the fraudulent nature of the company.

The Economic Offences Wing (EOW) of the Odisha police arrested the two main accused in the scam, Gurtej Singh Sidhu and Nirod Das. Sidhu is the India head of STA Crypto Token, and Das is the Odisha head of the company. The EOW is also investigating other people who may be involved in the scam.

The bust of the STA Crypto Token scam is a major blow to the cryptocurrency industry in India. It is a reminder that investors should be very careful when investing in cryptocurrencies, and they should always do their research before investing.

It is estimated that more than 2 lakh people invested in STA Crypto Token, and many of them lost their life savings. It is a reminder that we should always be careful when investing in anything, especially in cryptocurrencies.

Here are some tips for avoiding crypto scams:

• Do your research before investing in any cryptocurrency. Make sure you understand the risks involved, and only invest money that you can afford to lose.
• Don't invest in any cryptocurrency that is promoted by celebrities or influencers. These people are often paid to promote the cryptocurrency, and they may not be aware of the risks involved.
• Only invest in cryptocurrencies that are listed on legitimate exchanges. There are a lot of fake exchanges out there, so it is important to do your research before you invest.
• Be suspicious of any cryptocurrency that promises high returns with little risk. This is a classic sign of a Ponzi scheme.

If you are thinking about investing in cryptocurrencies, it is important to be aware of the risks involved. Do your research, and only invest money that you can afford to lose.

More details about the STA Crypto Token scam:

• The company was founded in September 2021 by Gurtej Singh Sidhu and David Gez. Sidhu is a Hungarian national who had visited India multiple times, and Gez is a Canadian national.
• The company claimed to be a "one-stop Solar Technologies service" that used blockchain technology to provide solar energy solutions. However, the company did not have any real solar technology businesses.
• The company offered investors STA tokens, which they claimed could be used to purchase solar energy products and services. However, the tokens were not actually backed by any real assets.
• The company promised investors high returns on their investments. Investors were told that they could earn up to 300% profit in just a few months.
• The company attracted investors by promoting itself with Bollywood actor Govinda. Govinda appeared in a promotional video for STA Crypto Token, and he told viewers that the company was a "safe and secure investment."
• The company was able to collect more than Rs 1,000 crore (about $130 million) from investors. However, the company was not able to keep up with the payments to investors, and the scam eventually collapsed.
• The Economic Offences Wing (EOW) of the Odisha police arrested the two main accused in the scam, Gurtej Singh Sidhu and Nirod Das. Sidhu is the India head of STA Crypto Token, and Das is the Odisha head of the company. The EOW is also investigating other people who may be involved in the scam.

The STA Crypto Token scam is a reminder that investors should be very careful when investing in cryptocurrencies. Do your research, and only invest money that you can afford to lose.