Odisha EOW To Question Actor Govinda In INR 1,000 Cr Online Ponzi Scam Investigation

SUMMARY

Govinda had endorsed a company, Solar Techno Alliance, which is alleged to have illegally operated an online ponzi scheme disguised as a cryptocurrency investment scheme

The company allegedly raised INR 1,000 Cr by collecting deposits from more than 2,00,000 individuals in India without the necessary authorisation from the Reserve Bank of India

As per EOW officials, Govinda is neither a suspect nor an accused in the case as of now

The Odisha Economic Offences Wing (EOW) is reportedly set to question Bollywood actor Govinda as part of its investigation into an INR 1,000 Cr online ponzi scheme.

The actor had endorsed a company, Solar Techno Alliance, which is alleged to have illegally operated an online ponzi scheme disguised as a cryptocurrency investment scheme, according to a report in The Times of India.

The company, which has a global presence spanning multiple countries, allegedly raised INR 1,000 Cr by collecting deposits from more than 2,00,000 individuals in India without the necessary authorisation from the Reserve Bank of India (RBI).

However, EOW officials said that as of now, Govinda is neither a suspect nor an accused in the case. His involvement is limited to being questioned due to his endorsement of STA (Solar Techno Alliance) in certain videos.

Officials intend to gather additional information and potential leads related to the scam from his statement during the questioning process.

A ponzi scheme is a fraudulent investment scheme in which returns are paid to earlier investors using the capital of newer investors. Ponzi schemes typically collapse when there are not enough new investors to pay the returns promised to earlier investors.

Ponzi schemes related to cryptocurrency are not a new phenomenon. India’s GainBitcoin is considered one of the biggest ponzi schemes globally, with more than 8,000 investors losing their money.

Inc42 reported earlier that over 3,85,000 Bitcoins were collected as part of GainBitcoin and other associated scams. Last year, 31 people from Maharashtra’s Solapur were allegedly duped of INR 45 Lakh in a crypto scam.

With the rise in crypto and other online scams, the government has cracked the whip and multiple such cases are under investigation. The Enforcement Directorate (ED) has seized proceeds of crime amounting to INR 1,144 Cr and arrested 20 people in cases related to cryptocurrency or virtual digital assets frauds, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha last month.