• The ED has attached assets worth ₹106.20 crore in India and Dubai in connection with the HPZ token investment scam.
• The scheme, involving shell entities and Chinese-linked networks, duped investors by falsely promising high returns on cryptocurrency investments.
• The total value of properties frozen in the case now stands at ₹603.40 crore, as part of a broader crackdown on crypto-related frauds.

The Enforcement Directorate (ED) has attached assets worth ₹106.20 crore in India and Dubai as part of its investigation into the HPZ token case, which the agency has termed a “scam.” The properties, both movable and immovable, reportedly belong to individuals and shell entities, including those linked to Chinese networks, accused of defrauding investors of substantial sums.

According to the ED, the operation involved promising investors astronomical returns through a token-based app called HPZ Token and online gaming and betting platforms. Victims were lured with claims of doubling their investments, only to have their funds siphoned off.

The investigation stems from a First Information Report (FIR) filed by the Cyber Crime Police Station in Kohima, Nagaland. The FIR outlined allegations under sections of the Indian Penal Code and the Information Technology Act related to fraudulent promises of high returns on investments in cryptocurrency mining, facilitated via the HPZ Token app.

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The agency revealed that investors were assured daily returns of ₹4,000 on an initial deposit of ₹57,000, to be paid over three months. While initial returns were disbursed to build trust, additional investment opportunities were proposed, leading victims to commit more funds. Eventually, the app and associated websites became inaccessible, leaving investors without recourse.

In its ongoing probe, the ED’s Dimapur sub-zonal office has traced and attached the proceeds of crime in connection with the case. This recent action follows an earlier phase of the investigation, during which the agency conducted searches at 44 locations nationwide. These searches resulted in the freezing of ₹176.67 crore in bank accounts and virtual wallets and the attachment of assets worth ₹320.53 crore.

According to the ED, the cumulative value of properties frozen or attached in the case now totals ₹603.40 crore.

In a similar operation earlier this year, the ED uncovered a large-scale money laundering scheme tied to a fraudulent Bitcoin investment racket originating from Dimapur, Nagaland. The investigation implicated 299 individuals, including 76 Chinese entities and 12 foreign nationals. Assets worth over ₹455 crore were seized in connection with the case.

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by Harshajit Sarmah.