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regular-article-logo Saturday, 22 June 2024

CBI conducts nationwide raids at 30 locations after registering case in fraudulent investment scheme

Agency has alleged scheme involved misleading public to invest in non-existent crypto-currency mining machine rentals

Imran Ahmed Siddiqui New Delhi Published 02.05.24, 05:57 AM
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The CBI on Wednesday conducted nationwide searches at 30 locations after registering a case in a fraudulent investment scheme linked to the HPZ token app.

The agency has alleged the scheme involved misleading the public to invest in non-existent crypto-currency mining machine rentals. The search operations covered 30 locations in 10 states across the country.

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The agency has booked two private companies, Shigoo Technology Private Limited and Lillian Technocab Private Limited, along with their directors in the case under IPC Sections 120B (criminal conspiracy) and 420 (cheating) and Section 66D of Information Technology Act, 2000, sources said.

The CBI alleged that the accused were involved in a fraudulent investment scheme linked to the HPZ token app. The HPZ is an app-based token which promises users large gains by investing in mining machines for Bitcoin and other cryptocurrencies. “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,” said an agency official.

The investigation has revealed that approximately 150 bank accounts related to the accused were used to collect funds from investors. “These funds were initially used for payouts to build trust, before being illicitly transferred out of India, often converted into cryptocurrency or moved through Hawala transactions,” the official added.

The CBI seized digital devices, including laptops, mobile phones, ATM and debit cards besides a trove of email accounts, during the searches spread across Delhi-NCR, Jodhpur, Rajasthan, Mumbai, Bangalore, Tamil Nadu, Andhra Pradesh, Uttar Pradesh, Bihar, Odisha and Madhya Pradesh.

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