The Indian Enforcement Directorate (ED) probes nine Chinese-controlled organizations in connection with a crypto scam where they exploited the app-based token “HPZ”. Additionally, the agency has frozen ₹9.82 crores worth of account balances.
According to the press release, the involved entities are Comein Network Technology Private Limited, Mobicred Technology Private Limited, Magic Data Private Limited, Baitu Technology Private Limited, Aliyeye Network Technology India Pvt Ltd, Wecash Technology Private Limited, Larting Private Limited, Magic Bird Technology Private Limited, and Acepearl Services Private Limited.
The ED’s money laundering investigation was built on the FIR dated 8 October 2021 against HPZ token and others that was filed in Kohima, Nagaland, under various sections of the Indian Penal Code, 1860.
The ED stated the “fraudsters” promised HPZ token users large returns on investments and declared it as “investing in mining machines for Bitcoin and other cryptocurrencies.”
The entities’ strategy was first to entice the victims to participate in their businesses under the promise of tripling or multiplying their initial investment using the “app HPZ Token” and other such applications.
According to the ED investigation, several Chinese-controlled entities, including Comein Network Technology Private Limited and others, operated numerous dubious loan and other apps including Cashhome, Cashmart, and easyloan engaged in the practice of taking money from the general public under the guise of running these apps.
Earlier, the ED had frozen bank and virtual account balances totaling Rs. 46.67 crores during searches on September 14, 2022. With the current freezing, the case’s overall freezing reached Rs. 56.49 crores. Further research is now being conducted.
Also Read: India’s ED Freezes Bitcoin worth $1.5 Million in Money Laundering
