HPZ app-based token fraud: ED carries out raids in Delhi, Gurgaon, Mumbai, Bengaluru, Salem

New Delhi [India], February 15 : The 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 app-based token named 'HPZ' and other similar applications by various entities.
During the searches, the total amount of Rs 29.5 crore was frozen under PMLA as the same was detected and found to be lying in various bank accounts/DEMAT accounts. Various incriminating documents and digital evidence were also found and seized during the search. With the current seizure, the total money frozen in this case is currently Rs 86.5 crore, a press release said.
The instant case was recorded on the basis of the first information report (FIR) registered by Cyber Crime Police Station, Kohima, Nagaland, against HPZ token and others.
The HPZ token is an app-based token which promises users of high returns against 'investment' in mining machines for bitcoin and other cryptocurrencies, the release said.
ED investigation revealed that two entities, namely Lillian Technocab and Shigoo Technology, were involved in operating and collecting money from investors in the name of HPZ token.
Further investigation revealed that Bhupesh Arora with others had control over Shigoo Technology and was indulged in operating unregistered gaming apps/website in this company and various other entities. He was collecting money fraudulently from the gullible public in the garb of these apps/website.
Further, searches were also conducted on an entity based in Chennai and related persons involved in the laundering of proceeds of crime in crypto assets, it said.