The Indian Economic Offenses Wing (EOW) has brought to light a significant cryptocurrency Ponzi scheme. This scheme has affected over 200,000 individuals from various states in India, creating a complex situation.
According to a detailed report from Asian News International (ANI), Solar Techno Alliance initiated the development of an innovative digital asset called STA Token on the Binance Smart Chain (BSC). The structure of this initiative resembled that of a Ponzi scheme. In this setup, new investments sustained the profits distributed to earlier investors.
CoinMarketCap (CMC) documented STA’s inception in September 2022. It began with an initial price of approximately $0.84. The value swiftly surged, reaching an extraordinary peak of $3.01 on April 3, 2023.
STA Token’s Market Performance and Cryptocurrency Ponzi Scheme Consequences
At present, the data from CoinMarketCap (CMC) presents a sharp contrast. STA’s market capitalization is currently at zero value during this assessment. The token’s current trading price is a mere $0.09, reflecting a drastic decline of 97% from its highest point.
The disclosed report provides insight into the intricate journey of the STA project. This endeavor remained elusive for an extended period, with its leaders skillfully changing locations to avoid attention. The authorities executed arrests, focusing on the core of the company’s leadership, across diverse urban areas.
Astonishing Accumulation and Digital Theft: ANI Report Highlights
The thorough ANI report emphasizes that the Ponzi scheme, structured akin to a pyramid, collected an enormous amount. This sum surpassed 1,000 crore Indian rupees, equivalent to 10 billion rupees, signifying an astonishing accumulation that exceeded the $120 million milestone in dollar terms.
Following a comprehensive assessment on July 13, it becomes apparent that wrongdoers, using their digital skills, engaged in theft activities. This led to the loss of digital assets worth a remarkable $450 million during the first half of 2023.
A preliminary examination discloses that, although the value may seem extraordinary, it’s crucial to emphasize that this scale signifies a 77% reduction compared to the corresponding period in 2022, as affirmed by the Chainalysis report.
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