New Delhi, Nov 28 The Enforcement Directorate (ED) on Thursday attached movable and immovable properties in India and Dubai valued at Rs.106.20 crore belonging to the accused, including Chinese-linked shell firms, involved in duping investors of hundreds of crores in the HPZ Token scam.
The ED’s investigations revealed that for an investment of Rs 57,000, returns of Rs 4,000 per day for three months were promised to investors by the accused.
The fraudsters had duped investors on the pretext of doubling their investment through the app ‘HPZ Token’ and via online gaming and betting websites.
With the latest attachment of assets, the total frozen proceeds of crime attached by the ED, Dimapur, in this case rose to Rs 603.40 crore, the ED said.
The ED, Dimapur Sub-Zonal Office, initiated investigation into the money laundering case on the basis of a FIR registered by Cyber Crime Police Station, Kohima (Nagaland), under various sections of IPC, 1860 and Information Technology Act, 2000 in relation with duping of gullible investors.
The investors were duped on the promise of giving astronomic returns on investing money for mining of Bitcoin and other Crypto Currencies, for which an app based token by the name of ‘HPZ Token’ was used.
Initially, the fraudsters paid the investors good returns to gain confidence and simultaneously made lucrative offers for fresh investments, the ED said.
The proposed offers led to more investments by gullible investors.
Thereafter, the funds so collected were siphoned off and the App/website became inaccessible, the ED said.
The present action of attachment of proceeds of crime is in continuation of earlier action when the ED, Dimapur, conducted searches at 44 locations throughout the country and froze bank accounts with funds totaling to Rs 176.67 crore maintained by shell entities in various banks/virtual accounts and attachment of Rs. 320.53 crore.
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