The Delhi Police have taken a significant step in cracking down on a ₹500 crore app-based scam by summoning prominent YouTuber Elvish Yadav, comedian Bharti Singh, and three others for questioning. The police action comes after receiving over 500 complaints alleging that several social media influencers and YouTubers promoted the HIBOX mobile application on their platforms, enticing people to invest in the app with promises of lucrative returns.
The investigation has led to the arrest of Sivaram, a 30-year-old resident of Chennai, as the main accused in the scam. Police have seized ₹18 crore from his four bank accounts.
According to complaints filed with the police, the HIBOX application, launched in February 2024, lured investors with promises of guaranteed daily returns ranging from 1 to 5 percent, amounting to 30 to 90 percent monthly. The app initially delivered on its promises, attracting over 30,000 investors who saw initial high returns. However, the app abruptly halted payments from July onwards, citing technical glitches, legal issues, and GST problems. The alleged companies behind the app vanished after closing their Noida office in Uttar Pradesh.
The Delhi Police’s Special Cell, investigating the case, is probing the involvement of EASEBUZZ and PhonePe. Authorities suspect that the merchant accounts used by the HIBOX fraudsters were opened virtually, bypassing verification processes and regulatory norms set by the Reserve Bank of India. The investigation is currently underway to ascertain the extent of involvement of employees from EASEBUZZ and PhonePe in facilitating the scam.
The Delhi Police investigation highlights the growing problem of cybercrime and the exploitation of online platforms for fraudulent activities. It also underscores the responsibility of influencers and YouTubers to thoroughly vet any investment schemes they endorse, ensuring that their followers are not misled or financially harmed. The investigation is ongoing, and further details are expected to emerge as the police delve deeper into the case.
