New Delhi [India], November 28 : The Enforcement Directorate (ED) has attached movable and immovable properties worth Rs 106.20 crore in India and Dubai as part of its investigation into the alleged HPZ token 'scam', the agency said on Thursday.
The 'scam', officials said, involving shell entities, including those with Chinese links, duped investors of hundreds of crores on the pretext of doubling their investments through an app and online gaming and betting websites.
ED's Dimapur Sub-Zonal Office has attached the Proceeds of Crime (POC) in the form of movable and immovable properties in "India and Dubai valued at Rs 106.20 crore belonging to various persons and shell entities, including Chinese-linked shell entities, which were found to be involved into duping the investors of hundreds of crores on the pretext of doubling their investment through the app "HPZ Token" and in online gaming and betting websites."
ED initiated an investigation on the basis of the First Information Report registered by the Cyber Crime Police station, Kohima (Nagaland) under various sections of IPC, 1860 and the Information Technology Act 2000 in relation with duping of gullible investors in the garb of the promise of 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.
ED investigations have brought out that for "an investment of Rs 57,000, returns of Rs. 4,000 per day for three months were promised."
"Initially returns were paid to gain the confidence of investors and simultaneous lucrative offers of fresh investments were proposed, leading to more investments by gullible investors. Thereafter, the funds so collected were siphoned off and the app and website became inaccessible," said the ED in a statement.
"The present action of attachment of POC is in continuation of earlier action when ED, Dimapur conducted searches at 44 locations throughout the country and freezed balances totaling to Rs 176.67 crore maintained by shell entities in various banks and virtual accounts and attachment of Rs 320.53 crore," said the federal agency.
So far, ED said, a total POC freezed and attached by its Dimapur unit in this case totals Rs 603.40 crore.