CBI Deals Another Blow to Crypto Investment Fraudsters with a Nationwide Crackdown

The CBI conducted a nationwide crackdown on a fraudulent crypto investment scheme linked to the HPZ Token App, searching 30 locations, seizing digital evidence, and booking two companies for allegedly misleading investors with non-existent crypto mining rentals.

CBI conducted a major countrywide operation on Tuesday, simultaneously raiding 30 places in 10 states and union territories concerning a fraudulent investment scheme related to the HPZ Token App. The department has already filed a case with the names of Shigoo Technology Private Limited and Lillian Technocab Private Limited as companies, and their directors for allegedly luring the public into investing in non-existent crypto-currency mining machine rentals.

The CBI has registered cases against the accused individuals under different sections of the Indian Penal Code such as criminal conspiracy, cheating, etc., and also provisions of the Information Technology Act, 2000. In the process of searching, the agency got its hands on a huge number of digital materials, such as laptops, mobile phones, ATM and debit cards, and email accounts from locations in Delhi-NCR, Jodhpur, Mumbai, Bengaluru, Tamil Nadu, Andhra Pradesh, Uttar Pradesh, Bihar, Odisha, and Madhya Pradesh.

In the view of CBI, the management made a claim saying that the HPZ Token App would deliver incredible returns through buying mining equipment for Bitcoin and other cryptocurrencies. The mode of operation was reported to consist of luring the victims to invest in the app by offering them fantastic returns from the mining of Bitcoins. The investigation as it is now reveals 150 bank accounts belonging to the suspects, where they collected money from the investors.

"Originally, the money was paid out to build trust and then fraudulently shifted out of India, via cryptocurrency or Hawala transactions," the CBI clarified in a statement that was released on Wednesday.

Also Read: ED Attaches Provisional Assets Of Raj Kundra, Including Bitcoin Worth ₹97.79 Cr In The Crypto Ponzi Scam

The agency claims that the scheme was a fraud act, which aimed at cheating the investors by alleging that they could make high returns on investments in non-existing crypto mining machines. The crackdown on the scale of the country has revealed the agency's determination to eliminate financial crime and safeguard the public interest.

The investigation into the HPZ Token App scam is ongoing, and the CBI is expected to make further revelations as the probe progresses.