The Indian Enforcement Directorate (ED) has frozen Rs 91.6 crore (916 million) worth of bank and payment gateway accounts related to companies involved in the HPZ Token fraud. The ED conducted searches on suspicious accounts linked to the cryptocurrency scam and money laundering. The ED clarified that the bank and payment gateway companies under investigation are not accused of involvement in the HPZ Token fraud but rather their premises were searched to obtain information regarding the suspicious accounts of companies involved in the scam.
INVESTIGATION INTO MISUSE OF HPZ TOKEN AND SIMILAR APPLICATIONS
The ED’s investigation into the misuse of the app-based token named “HPZ” and similar applications by various entities led to the search conducted the previous week. The investigation specifically targets entities controlled by Bhupesh Arora and his associates. In February, the ED had already frozen Rs 29.5 crore (295 million) found in bank accounts linked to various companies implicated in the HPZ Token fraud case.
ACCUSED DEFRAUDED VICTIMS THROUGH HPZ TOKEN
The accused used the HPZ Token, a cryptocurrency app-based token, to defraud victims. The scam promised high returns to users who invested in mining machines for Bitcoin and other cryptocurrencies. In addition, Bhupesh Arora and others controlled unregistered online gaming app-website companies that collected 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.
The ED’s recent action demonstrates the agency’s commitment to combating financial fraud, including cryptocurrency scams and money laundering. The freezing of accounts associated with companies involved in the HPZ Token fraud is a significant step in preventing the further victimization of individuals and companies. The ED’s ongoing investigation into the misuse of the HPZ Token and similar applications, specifically those controlled by Bhupesh Arora and his associates, underscores the need for increased vigilance and regulation in the cryptocurrency sector.
