Stock Trading App Scam: Elvish Yadav, Bharti Singh Summoned in Rs 500 Crore Fraud
The Delhi Police recently uncovered a massive scam involving a stock trading app called “HIBOX,” leading to the summoning of well-known influencers Elvish Yadav and Bharti Singh. The scam, which defrauded investors of over ₹500 crore, revolves around the promotion of the app by social media influencers, luring people into investing with promises of high returns.
How the Scam Unfolded
The app, launched in February 2024, gained attention by offering daily returns of 1-5%, translating into a massive 30-90% monthly return. Over 30,000 individuals were lured into the scheme through online promotions by popular figures like YouTuber Elvish Yadav, comedian Bharti Singh, and several other influencers. As with most Ponzi schemes, initial investors received their promised returns, further fueling trust in the platform. However, by July, the app abruptly halted payments, citing technical issues and regulatory challenges like GST concerns.
The promoters of HIBOX disappeared after shutting down their Noida office, leaving investors in the lurch. Complaints poured in, with over 500 cases reported across various districts of Delhi, NCR, and northeastern regions. This led the police to launch a detailed investigation, resulting in the arrest of the app’s mastermind, Sivaram, a Chennai-based resident, and the seizure of ₹18 crore from his bank accounts.
The Role of Influencers
Social media influencers and celebrities were at the heart of this scam. Platforms like Instagram, YouTube, and other social channels were flooded with promotional content endorsing HIBOX. These endorsements were not just passive; they actively persuaded their millions of followers to trust and invest in the app. Names like Elvish Yadav, who recently won Bigg Boss OTT 2, and comedian Bharti Singh added credibility to the app, making it easier for the masterminds to deceive investors.
The promotional activities raised ethical concerns about the responsibilities of influencers in financial promotions. While some influencers might claim ignorance, their involvement has raised questions about the extent of their knowledge regarding the app’s fraudulent nature. Several of them reportedly received hefty sums for these endorsements, further complicating their defense.
Investigation and Legal Action
The Intelligence Fusion & Strategic Operations (IFSO) wing of the Delhi Police has taken the lead in the investigation. They have so far registered 127 complaints and are analyzing transactions linked to payment gateways like EASEBUZZ and PhonePe, which were reportedly used by the fraudsters to siphon off the funds. The involvement of these platforms in facilitating the scam without proper due diligence is also under investigation.
Sivaram, the mastermind behind the scam, was arrested after the police traced financial transactions linked to the app. Further investigations are focusing on whether the influencers knowingly participated in the fraud or were mere pawns in a bigger scheme. The police are also examining the role of employees from payment gateways and merchant accounts linked to HIBOX, as their negligence may have enabled the scam to reach such massive proportions.
The Fallout
The HIBOX scam has exposed the darker side of influencer marketing, particularly when it comes to financial products. While these figures enjoy immense trust and credibility, their endorsements can sometimes lead unsuspecting individuals into scams, as seen in this case. With police investigations ongoing, it remains to be seen how deeply the influencers were involved and whether they will face any criminal charges. Their summons, however, has sparked debates about the ethical responsibilities of social media figures in endorsing products and services.
Lessons for Investors
The HIBOX scam serves as a stark reminder for investors to exercise caution when dealing with promises of unrealistically high returns, especially when such schemes are endorsed by popular social figures. While the allure of quick money can be tempting, due diligence and skepticism are essential in today’s digital age. The involvement of high-profile influencers does not necessarily guarantee the legitimacy of an investment opportunity.
As the investigation progresses, the public awaits further developments. Both Elvish Yadav and Bharti Singh are expected to appear for questioning soon, and the police are likely to bring more influencers into the fold as the scam’s details unravel.
This case highlights the importance of regulatory oversight in financial promotions and calls for a reevaluation of the influencer industry’s role in endorsing financial services and products
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