STA Token Scam: Rumors Of Gurtej Singh Sidhu’s Release
NOIDA (CoinChapter.com)—The STA crypto token scandal is a recent example of the threat of scams in the crypto world. Now, rumors of its founder, Gurtej Singh Sidhu, getting released from jail are doing the rounds on social media.
The supposed revolutionary project turned out to be one of the most elaborate Ponzi schemes in recent history.
Spearheaded by Gurtej Singh Sidhu, the India head of the Solar Techno Alliance, the scheme promised high returns on investments akin to well-established cryptocurrencies like Bitcoin and Ethereum. However, the reality was starkly different, leaving thousands of investors out of pocket.
Gurtej Singh Sidhu Released From Jail?
Rumors spread that authorities released Gurtej Singh Sidhu, one of the alleged masterminds behind the scam, out on bail. Specifically, a video (in Hindi) surfaced that claimed that authorities released Sidhu from jail, with a clip showing the alleged culprit entering the airport to leave for home.
The video shows a clip of the STA executive checking in at an airport, which the video narrator claims is proof that Gurtej Singh Sidhu has been released from jail or is out on bail.
However, there have been no official judgments on the matter, and no other news source has reported anything of the sort. Efforts to contact the parties involved did not bear fruit.
It seems likely that interested parties spread the rumor to entice a spike in STA prices.
The STA Token Scandal: A Ponzi Scheme Unmasked
As rumors of Gurtej Singh Sidhu getting released hit the wires, STA price reacted as traders expected.
STA token price spiked more than 35% hours after the rumors started circulating, likely helping the traders net a decent profit.
Solar Techno Alliance’s STA token was launched in September 2021. It promised to blend green energy with blockchain technology, attracting investors with competitive prices and the lure of significant returns. However, these returns were merely the result of new investments, typical of a Ponzi scheme.
The Economic Offences Wing (EOW) of Odisha, India, spearheaded efforts to dismantle this scam, revealing that Gurtej Singh Sidhu and his associates used aggressive marketing and celebrity endorsements to draw in funds. They falsely promised daily returns ranging from $20 to $3,000, which ballooned the STA token scam to over Rs 1,000 crore (approximately $120 million).
Additionally, investigations exposed Sidhu’s orchestration of a vast illegal money network involving both domestic and international transactions. The authorities arrested him due to his fraudulent activities, which he disguised as an innovative cryptocurrency project. Moreover, the court repeatedly denied his bail plea due to the grave nature of the offenses.
The scandal serves as a stark warning to the crypto community, underscoring the need for thorough due diligence. It also exposes the risks of investment schemes that offer high returns without transparency or genuine value.
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