Agra: A major cryptocurrency fraud unearthed in Uttar Pradesh’s Agra has exposed how legacy multi-level marketing (MLM) techniques were repurposed into a sophisticated digital scam, resulting in losses estimated at nearly ₹50 crore. Agra Police have busted a high-tech fraud network allegedly masterminded by a Class 7 dropout who leveraged his early exposure to MLM operations and basic digital infrastructure to build a sprawling scam syndicate.
According to Deputy Commissioner of Police (City) Aditya Kumar, the prime accused, Ajay, had worked with MLM firms such as Ebiz and Speak Asia in the early 2000s. It was during this period that he learned the mechanics of chain-based recruitment, referral incentives and psychological persuasion skills that later became the foundation of the crypto fraud.
From MLM Playbook to Crypto Pitch
During interrogation, Ajay told investigators that while working as a distributor in Agra around 2002, he came into contact with several individuals familiar with MLM operations, including Narendra Sisodia, Gopal, Vinay and Vinod. Gopal and Vinod allegedly proposed the idea of launching a fake cryptocurrency platform that could mimic legitimate digital investment portals while running entirely on a referral-driven pyramid structure.
The group subsequently launched a fake cryptocurrency named ‘AST Coin’. A professional-looking website and email infrastructure were created using a domain purchased from a Noida-based company, while hosting services were taken from a foreign server provider, Liquid Web, to give the operation an international footprint. The server login was reportedly operated under the username ‘AST Web’.
Investigators said the website was designed to display fake wallet balances, rising coin prices and attractive returns, creating the illusion of a profitable crypto investment ecosystem. In reality, no cryptocurrency trading or blockchain activity existed.
How the Chain Was Built
The scam began with investors being asked to pay ₹8,500 to create a user ID on the platform. In return, they were promised returns of up to seven times their investment. Participants were encouraged to recruit at least 11 new members using referral codes, with assurances that commissions and higher returns would be credited based on the size of their network.
As the chain expanded, victims began onboarding friends, relatives and acquaintances, convinced by the steady rise in dashboard balances and promises of exponential growth. Within a few months, more than 1,500 people were enrolled, and nearly ₹1.27 crore was collected solely through ID registration fees. Larger sums were subsequently collected in the name of investment packages.
Police said the funds were routed into accounts and crypto wallets controlled by the accused, many of which were registered using rented or proxy identities.
Three-Year ‘Commitment Oath’
To sustain investor confidence and delay withdrawals, the accused organised meetings at five-star hotels, where participants were made to take a so-called “commitment oath”. Investors were persuaded to agree not to withdraw funds for three years, even if new members stopped joining.
They were assured that at least 1,000 people would be added to the network and that collective wealth creation was guaranteed. When investors attempted to withdraw large amounts, the system would either show reduced profits or disable withdrawal options entirely. Excuses such as technical glitches, server upgrades or market volatility were routinely used to stall payments.
In several cases, funds were quietly transferred to other wallets or accounts before investors realised they had been locked out.
43 Complaints Filed, Losses Mounting
So far, 43 victims have lodged formal complaints with the police. Individual losses range from ₹25,000 to as high as ₹50 lakh. Investigators believe the actual number of victims and the total defrauded amount could be significantly higher.
Police have registered cases under sections related to cheating, IT Act violations and organised crime. Digital forensic analysis of servers, bank accounts and wallets is underway, and further arrests are expected as the probe widens.
Authorities have warned investors to remain cautious of referral-based crypto schemes promising guaranteed or unusually high returns, noting that such models often mask pyramid frauds under the guise of emerging technology.
