On Wednesday, officials reported that the Central Bureau of Investigation (CBI) conducted searches at 30 locations spread across 10 states and union territories. This action follows the registration of a case related to a fraudulent investment scheme associated with the HPZ Token App.
The agency has accused the scheme of deceiving the public into investing in non-existent crypto-currency mining machine rentals. The nationwide operation concluded Tuesday night.
Two private companies, Shigoo Technology Private Limited and Lillian Technocab Private Limited, along with their directors were booked in the case under Indian Penal Code Sections 120-B (criminal conspiracy) 419, 420 (cheating) and Section 66 D of Information Technology Act, 2000, officials said.
During the searches conducted across Delhi-NCR, Jodhpur in Rajasthan, Mumbai in Maharashtra, Bengaluru in Karnataka, as well as various locations in Tamil Nadu, Andhra Pradesh, Uttar Pradesh, Bihar, Odisha, and Madhya Pradesh, the CBI seized digital devices such as laptops, mobile phones, ATM and debit cards, along with a collection of email accounts.
“The HPZ is an app-based token which promises users large gains by investing in mining machines for Bitcoin and other crypto currencies. The fraudsters allegedly used a modus operandi that enticed victims to invest in the HPZ token app on the pretext of astronomical returns on their investments in Bitcoin mining,” the CBI alleged.