The Delhi High Court stated that engaging in cryptocurrency carries significant consequences for the nation's economy through the transformation of recognized currency into illicit, untraceable funds. 

As a result, Justice Girish Kathpalia rejected the bail request of a businessman involved in a corruption case tied to cryptocurrency. 

In its observation, the court noted that involvement in cryptocurrency has serious effects on our country’s economy by converting legitimate currency into dark, unaccountable money.

The charges against the defendant in this multi-victim fraud are particularly grave, especially given his history of being involved in 13 similar cases, the court remarked.

The Delhi High Court denied bail to a businessman accused of misleading over 50 individuals out of approximately Rs.50 lakh through deceitful cryptocurrency investments, commenting that such activities have a “significant impact on the economy by transforming lawful currency into dark, untraceable funds.”

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Justice Girish Kathpalia made these comments while considering Umesh Verma’s bail application, the owner of the Dubai-based Pluto Exchange, who was taken into custody in December 2020 in connection with a cheating case filed by the Economic Offences Wing (EOW).

 

The case was initiated by Joginder Kumar, who claimed that Verma enticed him to invest Rs.5 lakh in cryptocurrency, promising monthly returns of 20–30 percent. Kumar subsequently found that many others had also invested, collectively contributing nearly Rs.50 lakh. Once the returns ceased, Verma reportedly did not return their money.

Verma contended that he had no intention of deceiving investors, arguing that there was no illegality when he launched the business and that he “fell into deep financial trouble” after the government abruptly derecognized cryptocurrency. He also stated that he had resolved the majority of investor claims.

Nevertheless, the complainant’s attorney Archit Kaushik and the EOW’s additional public prosecutor Ritesh Kumar Bahri opposed the bail request, asserting that Verma continued to attract investments even after cryptocurrency was derecognized. They claimed that he deceived 61 people, including 38 from various states, and represented a flight risk.

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The court concurred with their arguments, stating: “Economic crimes, unlike conventional physical offenses, are executed with intricate planning and skill. In particular, engaging in cryptocurrency has serious repercussions for the economy of our nation by dissolving recognized currency into dark, unknown, untraceable funds.”