HPZ Probe: ED Raids Mobile App Offices In Multiple Cities Dealing In Crypto Token

HPZ Token is an app-based token which promised users of high returns against 'investment' in mining machines for Bitcoin and other cryptocurrencies.

During the searches, a total amount of Rs 29.5 crore was frozen under PMLA.

The Enforcement Directorate (ED) on Wednesday said that they recently carried out search operations in Delhi, Gurugram (Haryana), Mumbai, Bengaluru and Salem (Tamil Nadu) in respect of a probe relating to the misuse of the app-based token, named 'HPZ' and other similar applications by various entities. The case was lodged on the basis of an FIR registered by the Cyber Crime Police Station, Kohima, Nagaland, against HPZ token & others.

The official said that HPZ Token was an app-based token which promised users of high returns against 'investment' in mining machines for Bitcoin and other cryptocurrencies.

"ED Investigation revealed that two entities, namely Lillian Technocab Pvt. Ltd and Shigoo Technology Private Limited were involved in the operating and collecting money from investors in the name of HPZ token," the ED official said.

The ED official further said that they learnt during the investigation that one Bhupesh Arora with others had control over Shigoo Technology Private Limited and indulged in operating unregistered gaming apps/websites in this company and various other entities and was collecting money fraudulently from the unsuspecting public in the garb of these apps/website.

"Searches were also conducted on an entity based in Chennai and related persons involved in the laundering of proceeds of crime in crypto assets.

During the searches, a total amount of Rs 29.5 crore was frozen under PMLA as the same was detected and found to be lying in various Bank accounts/DEMAT Accounts," the ED said.

The official said that various incriminating documents and digital evidence were also found and seized during the search.

With the current seizure, the total freezing, in this case, is now Rs 86.5 crore.

Further investigation into the matter is on.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)

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