Key Highlights
- The latest filing adds 87 new accused, taking the total to 437 individuals.
- The scheme operated via a mobile app promising returns from Bitcoin mining investments.
- Funds were allegedly routed through layered networks involving fintech and e-commerce entities.
India’s Enforcement Directorate (ED), Dimapur Sub-Zonal Office, on Thursday filed a second supplementary chargesheet in connection with the ₹2,200 crore HPZ Token cryptocurrency investment scam.
According to the ED’s official press release dated April 30, 2026, the filing under the provisions of the Prevention of Money Laundering Act (PMLA) is based on FIRs lodged at the Cyber Crime Police Station, Kohima, Nagaland; CID Police Station, Ulubari, Guwahati, Assam; and CBI (EO-III), Delhi.
The investigation relates to a complex fraud case where thousands of investors across India were allegedly misled by promises of high profits from investments in Bitcoin mining machines.
The HPZ token scam
The HPZ Token is reported to be a cryptocurrency investment scheme operated via a smartphone application, which commenced operations in June 2021. According to sources, the operators shut down the scheme in August 2021, leaving victims without access to their investments.
According to the ED, the conspirators include Bhupesh Arora and his cohorts. The fraud allegedly involved a network of shell corporations, mule accounts, hawala agents, and foreign exchange dealers to launder proceeds generated from the scheme.
The total number of accused persons in the second supplementary prosecution case now stands at 437 after 87 new accused have been brought to notice.
Connections across China and India
Investigation found that proceeds of crime routed through companies such as Shigoo Technology Private Limited and Lillian Technocab Private Limited were also diverted to dubious firms such as Digi India Marketing, Analytix Business Ventures Private Limited, Freebie Solutions Private Limited, Truvinta Solutions Pvt. Ltd., Zavion Trading Pvt. Ltd., and Sark Enroll System Private Limited. These companies are allegedly linked to Bhupesh Arora and others.
The probe also identified the involvement of Chinese-affiliated entities used to collect and layer funds. Investigators noted overlaps in addresses, email IDs, and directors across multiple entities, indicating coordinated activity.
One such entity, Zhudao Infotech Private Limited, is reportedly operated by General Manager Ming Lou and Director Jian Li.
Several individuals from China have also been named in the investigation, including Linlei Yuan (Magic Data Technology), Zhou Jie (Larting Pvt. Ltd.), Wan Jun (Jilian Consultants), Ming Lou, Jian Li (Zhudao Infotech), Yanpeng Qu (Mad-Elephant Network Technology), Yi Liu (Omelette Technology), and Kevin Huang (Adexter Concepts).
Payment firms named in ED chargesheet
According to the ED press release, several Indian firms, including Paygate India Pvt. Ltd., Safexpay Technology Private Limited, Virtuous Payment Solutions LLP, Intrapay Product Solutions, and IECS Consultancy Ltd., have allegedly helped in the laundering of proceeds of crime through the alleged misuse of payment gateway infrastructure. The allegations are contained in the Second Supplementary Prosecution Complaint filed before the Special PMLA Court in Dimapur, Nagaland, and have not been adjudicated by any court.
The ED has alleged that key personnel named in the complaint— Ravi Shankar Gupta, Aditya Oberoi, Pankaj Tripathi, and Joy Oberoi — allegedly misused payment gateway infrastructure and floated dummy entities to layer funds. These remain allegations under investigation, and at the time of publishing, no finding of guilt has been recorded against any named individual or entity.
The full text of the ED’s press release on this matter is available on the Directorate of Enforcement’s official website at: https://enforcementdirectorate.gov.in/media/press-release-documents/d5aae482-1b50-4956-b4c3-d0a043bb1d6d_Press%20Release_HPZ_Token_2nd_SPC_30042026_DMSZO-2.pdf.
Freezing assets
As per the ED, the entities named in the complaint allegedly enabled the layering of illicit money via a multilayered network comprising fintech companies, payment gateway service providers, online retail platforms, video game firms, and cryptocurrency to hide the source of their money.
Till now, the ED has managed to attach or freeze assets worth several crores in connection with this case.
Growing risks
The HPZ Token scam highlights the increasing risks posed by investment schemes that use cryptocurrency narratives to attract users with promises of high returns.
Authorities have cautioned the public about such unregulated schemes, which may function as large-scale frauds with cross-border links. This supplementary chargesheet builds on earlier findings and expands the scope of the investigation into the broader money laundering network.
Meanwhile, The Crypto Times has reached out to the payment firms named in the ED’s complaint for comment. This article will be updated to include any response received.
Disclaimer: This article reports on publicly available information released by the Directorate of Enforcement, Government of India. All allegations described herein are those made by investigative authorities and have not been adjudicated by a court of law. Entities and individuals named are presumed innocent unless and until proven guilty.
Also Read: Senate Closes the Door on Prediction Market Participation for Lawmakers
