New Delhi, November 28, 2024: The Enforcement Directorate (ED) has attached assets worth Rs. 106.20 crore in connection with the HPZ token investment scam, which is linked to Chinese shell companies. The scam, which enticed investors with promises of high returns from Bitcoin mining and online gambling ventures, used an app-based token called HPZ Token.
Investigations have revealed that the fraudulent entities opened several bank accounts and merchant IDs under fictitious names to launder the proceeds of crime. Investors were promised daily returns of Rs. 4,000 for a three-month investment of Rs. 57,000. However, after an initial payout, they were asked to invest more money without receiving any additional returns.
This latest action by the ED builds on earlier asset freezes in its ongoing crackdown on illegal financial operations, especially those involving cryptocurrency fraud and online gaming. To date, the ED has frozen assets worth Rs. 455.37 crore tied to the scam.
The ED’s continued efforts highlight its commitment to curbing fraudulent financial schemes involving cryptocurrency. The investigation remains active, with authorities working to uncover the full extent of the illegal operations associated with these shell companies.
