- 916 million have been frozen from bank accounts of companies involved in HPZ Token fraud, reported Indian Enforcement Directorate.
- Bank and payment gateway companies were searched for information on suspicious accounts.
- The investigation relates to the misuse of the app-based token by entities controlled by Bhupesh Arora.
Various bank and payment gateway accounts associated with companies engaged in the HPZ Token fraud, a cryptocurrency scam with connections to money laundering, have had Rs 91.6 crore (916 million) frozen by the Indian Enforcement Directorate (ED). The ED had recently conducted searches on suspicious accounts belonging to these companies.
According to sources within the ED, the bank and payment gateway companies under investigation are not themselves accused in the HPZ Token fraud case. Rather, their premises were searched to obtain information regarding the suspicious accounts maintained by the companies implicated in the scam.
In a press release issued on Monday, the ED disclosed, that the previous week’s search was related to an investigation into the misuse of the app-based token called “HPZ” and similar applications by various entities, specifically those controlled by Bhupesh Arora and his associates. The release also stated:
The previous week’s search was conducted] in respect of the accounts held by the entities controlled by Bhupesh Arora and his associates in connection with an investigation relating to the misuse of App-based token named ‘HPZ’ and other similar applications by several entities.
Meanwhile, back in February, the ED had frozen Rs 29.5 crore (295 million) found in bank accounts belonging to various companies implicated in the HPZ Token fraud case.
The accused had defrauded victims through the use of HPZ Token, a cryptocurrency app-based token promising high returns to users who invested in mining machines for Bitcoin and other cryptocurrencies.
Additionally, Bhupesh Arora and others controlled unregistered online gaming app-website companies, which were used to collect money from investors. Last week’s ED action is related to a money laundering case registered based on a cheating FIR filed by the Cyber Crime Police Station in Kohima, Nagaland.