Kohima: The Directorate of Enforcement (ED) Dimapur Sub-Zonal Office, Nagaland, has attached movable and immovable assets worth ₹41.83 crore in connection with the ongoing investigation into the HPZ Token money laundering scam.
The assets belong to various individuals and shell entities involved in a scheme that defrauded investors of hundreds of crores.
The ED’s investigation was initiated following an FIR lodged by the Cyber Crime Police Station in Kohima, Nagaland, under multiple sections of the Indian Penal Code (IPC), 1860, and the Information Technology Act, 2000. The case revolves around a fraudulent scheme that promised astronomical returns on investments in “Bitcoin and other cryptocurrency mining” through an app-based token called “HPZ Token.”
Thousands of investors were duped through this scam in Nagaland. The fraudsters lured victims into investing by promising to double their money through the HPZ Token app and other online gaming and betting websites. To facilitate the scam, the perpetrators opened multiple bank accounts and Merchant IDs under the names of shell entities with dummy directors and proprietors. These accounts were used to rotate and layer the funds obtained from unsuspecting investors.
The modus operandi involved initially promising investors a return of ₹4,000 per day for three months on an investment of ₹57,000. Early returns were paid out to build trust and encourage further investment. However, the funds were eventually siphoned off, and by August 15, 2021, the HPZ app and associated websites became inaccessible, leaving investors stranded.
This latest action by the ED follows a series of earlier measures, including searches at 44 locations across the country and the freezing of bank balances totaling ₹176.67 crore held by shell entities. Assets worth ₹278.70 crore had also been attached. To date, the total proceeds of crime frozen and attached by the ED in this case amount to ₹497.20 crore.
The ED has stated that the investigation is ongoing, with further developments expected in due course.
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