ED conducts raid, freezes accounts of Chinese- controlled entities

New Delhi, Sep 29 (FN Agency) The Enforcement Directorate (ED) carried out search operation and freezed accounts of various Chinese-controlled entities maintained with payment gateways in an investigation relating to alleged misuse of App-based token named “HPZ” and other similar applications by several entities, ED in a statement said on Thursday.

ED initiated money laundering investigation on the basis of FIR October 8, 2021 filed under various sections of Indian Penal Code, 1860 by Cyber Crime Police Station, Kohima, Nagaland, against HPZ token and others. The HPZ token was an “App-Based Token”, which promised users of large gains against investment by declaring the same as “investing in mining machines for Bitcoin and other cryptocurrencies”. The modus-operandi of the alleged fraudsters was to first lure the victims to invest in their companies on the pretext of doubling / multiplying their investment through the “App HPZ token” and other similar applications, it stated. ED investigation revealed that various Chinese controlled entities in service agreements with various NBFCs were also operating multiple suspicious loan/other Apps and indulged in receiving funds from the public on pretext of operating these Apps, it added. ED had earlier freezed Bank/Virtual account balances amounting to Rs 46.67 crore during the searches conducted on September 14, 2022. With the present freezing, total freezing in this case stands at Rs 56.49 crore.