CBI Cracks Down on Nationwide Crypto Scam Involving HPZ Token App
In a significant operation against fraudulent investment schemes, the Central Bureau of Investigation (CBI) has conducted searches across 30 locations in 10 states and Union Territories. The crackdown, which concluded on Tuesday night, is centered around a deceptive investment scheme promoted through the HPZ Token App. This app misled the public into investing in non-existent cryptocurrency mining machine rentals.
The CBI has targeted two private entities, Shigoo Technology Private Limited and Lillian Technocab Private Limited, along with their directors, under several charges including criminal conspiracy and cheating, detailed under IPC sections 120B, 419, 420, and Section 66 D of the IT Act, 2000. The agency’s spokesperson revealed that the searches led to the seizure of multiple digital devices such as laptops, phones, and ATM cards, in addition to a large number of email accounts.
Investigations have uncovered around 150 bank accounts linked to the accused parties, used primarily to gather investments. Initially, these funds were redistributed among early investors to establish trust, before being illicitly funneled out of the country and often converted into various cryptocurrencies, according to the CBI spokesperson. This ongoing probe highlights the growing challenges in regulating digital finance platforms and ensuring investor security against burgeoning online frauds.
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