Key Highlights
- Authorities froze over ₹10 crore across 94 bank accounts linked to the HPZ Token scam.
- The funds were allegedly laundered through mule accounts, shell firms, and payment gateways.
- Investigators estimate the total proceeds of crime at about ₹2,200 crore nationwide.
India’s financial crime agency, the Enforcement Directorate India, has provisionally attached about ₹10.24 crore held across 94 bank accounts as part of its ongoing investigation into the alleged HPZ Token scam.
According to the official announcement, authorities say the case involves a nationwide investment fraud that lured victims with promises of unusually high returns.
The attachment order is part of efforts to secure suspected proceeds of crime while the investigation continues.
Funds routed through mule accounts and shell firms
Investigators traced investor payments through a web of intermediary accounts designed to obscure the origin of funds.
Payment gateways allegedly misused
According to officials, money was first collected via multiple UPI IDs linked to so-called mule accounts, bank accounts controlled by third parties on behalf of fraud operators. These funds were then transferred to shell companies allegedly created to receive and redistribute illicit proceeds. The agency said the network relied on dummy directors and layered transactions to complicate detection.
Authorities also reported that several payment aggregator platforms were used to process transactions tied to the scheme. The funds were routed through services including PayU, Aggrepay, and Easebuzz, allegedly under false pretenses to disguise the nature of the payments.
Such platforms can handle high transaction volumes, making them attractive tools for moving money quickly if compliance controls are bypassed.
Investigators allege that a small portion of the collected funds was returned to some participants to create the impression that the investment program was legitimate. This tactic, commonly associated with Ponzi-style operations, is often used to encourage victims to reinvest or recruit additional participants.
Key accused and financial trail
Moreover, the ED said it has tracked fund flows to several individuals, including alleged mastermind Bhupesh Arora, along with associates and family members who were reportedly linked to shell entities involved in the operation.
Authorities estimate that the total proceeds of crime connected to the case amount to roughly ₹2,200 crore. Of this, more than ₹662 crore has already been attached in previous enforcement actions.
The scale and scope of the case involving HPZ Token are a clear example of how digital payments and online investment platforms are being misused for financial fraud. By attaching assets and tracing financial trails, law enforcement agencies seek to dismantle such financial scams and schemes.
Also Read: India’s ₹32 Cr Bitcoin Extortion Case: Gujarat HC Grants Bail to Ex-SP
