In a recent operation conducted by the Central Bureau of Investigation (CBI), a widespread search was undertaken across 10 states and union territories, encompassing 30 diverse locations. This initiative was spurred by the initiation of a legal case pertaining to a deceitful investment scheme connected to the HPZ Token Application. According to officials, this endeavor transpired on Wednesday.
The investigation implicates the orchestration of a scheme designed to lure unsuspecting individuals into investing in purported crypto-currency mining machine leases. This deceptive ploy spanned the entire nation and concluded during the nocturnal hours of Tuesday.
Two privately owned enterprises, namely Shigoo Technology Private Limited and Lillian Technocab Private Limited, alongside their respective directors, find themselves embroiled in the legal ramifications. They face charges under various sections of the Indian Penal Code, including but not limited to Sections 120-B, 419, and 420, which pertain to criminal conspiracy and fraudulent activities. Additionally, charges under Section 66 D of the Information Technology Act, 2000, have been levied against them.
During the course of the investigative raids, a plethora of digital devices, comprising laptops, cellular phones, ATM and debit cards, as well as an assortment of email accounts, were confiscated by the CBI. These operations spanned across the geographical expanse of Delhi-NCR, Jodhpur in Rajasthan, Mumbai in Maharashtra, Bengaluru in Karnataka, and various other locations in Tamil Nadu, Andhra Pradesh, Uttar Pradesh, Bihar, Odisha, and Madhya Pradesh.
The HPZ application serves as a platform promising significant returns to its users through investments in mining machinery for Bitcoin and other cryptocurrencies. Allegedly, the perpetrators employed a stratagem that enticed unsuspecting victims to invest in the HPZ token application under the guise of lucrative returns on their Bitcoin mining investments, according to the CBI’s assertions.
The ongoing investigation has revealed the existence of 150 bank accounts associated with the accused parties, utilized for the collection of funds from investors. These funds were purportedly utilized initially to facilitate payouts, thereby fostering a sense of trust amongst investors, before being unlawfully siphoned out of the country. Often, these funds were converted into cryptocurrency or transferred through clandestine Hawala transactions, as detailed in a statement issued by the CBI on Wednesday.