Directorate of Enforcement (ED) has carried out search operations under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in Delhi, Gurgaon, Mumbai Bengaluru and Salem in respect of an investigation relating to the misuse of an App-based token named “HPZ” and other similar applications by various entities.
The current case was based on an FIR filed by the Cyber Crime Police Station in Kohima, Nagaland, against HPZ token and others. The HPZ Token was an App-Based Token that offered customers substantial returns on ‘investment’ in Bitcoin and other cryptocurrency mining devices.
The ED investigation indicated that two firms, Lillian Technocab Pvt. Ltd and Shigoo Technology Private Limited were involved in the operation and collection of funds from investors under the guise of the HPZ token. Further investigation revealed that one Bhupesh Arora, along with others, controlled Shigoo Technology Private Limited and was engaged in operating unregistered gaming Apps/websites in this company and various other entities and was fraudulently collecting money from the gullible public under the guise of these Apps/websites. In addition, searches were performed on a corporation situated in Chennai and linked individuals involved in the laundering of criminal profits in crypto assets.
During the searches, a total of Rs. 29.5 Crore was frozen under PMLA after it was discovered in different bank accounts/DEMAT accounts. During the search, several damning papers and digital evidence were also discovered and seized. The recent seizure brings the total freezing in this case to Rs. 86.5 Crore (approx.). Further research is being conducted.
