The Central Bureau of Investigation (CBI) has conducted searches at more than 30 locations across 10 States/Union Territories in connection with a “scam” linked to HPZ Token app, through which a large number of investors were cheated on the pretext of high returns.
The searches were carried out in and around Delhi, Maharashtra, including Mumbai; Karnataka, including Bengaluru; Rajasthan, including Jodhpur; Bihar, Uttar Pradesh, Madhya Pradesh, Odisha, Andhra Pradesh, and Tamil Nadu, leading to the seizure of mobile phones, computer hard drives, SIM cards, ATM/debit cards, email accounts, and various documents.
The agency had earlier registered a case against two companies – Shigoo Technology Private Limited and Lillian Technocab Private Limited – and their directors.
“The scheme involved misleading the public into investing in non-existent cryptocurrency mining machine rentals. The HPZ is an app-based token which promises users large gains by investing in mining machines for Bitcoin and other cryptocurrencies. The fraudsters allegedly used a modus operandi that enticed victims to invest in the HPZ token app on the pretext of astronomical returns on their investments in Bitcoin mining,” said the agency.
The CBI has so far detected about 150 bank accounts related to the accused which were used to collect funds from the investors. “These funds were initially used for payouts to build trust, before being illicitly transferred out of India, often converted into cryptocurrency or moved through ‘hawala’ transactions,” it said.
The Enforcement Directorate (ED) has also been probing the alleged scam from the money-laundering angle and has frozen assets worth over ₹176.67 crore. It took possession of assets worth about ₹55.56 crore in the form of balances available in the bank accounts and merchant IDs held by various shell and Chinese-linked entities in connection with a case involving HPZ Token app and others.
The ED has alleged that shell entities having dummy directors or proprietors had opened bank accounts and merchant IDs for rotating and layering the funds fraudulently received for illegal online gaming, betting, and investments for Bitcoin mining. On an investment of ₹57,000, returns of ₹4,000 per day for three months were promised. However, the money was paid only once and then, fresh funds were sought by the accused.
