CBI Raids 30 Locations Across 10 States In Crackdown On App-Based Investment Scheme

Acting on the case of a fraudulent investment scheme, the agency conducted searches at 30 locations. 

CBI raids several locations in HPZ Token App case. (Representational Image)

Source : PTI Images

The Central Bureau of Investigation (CBI) on Wednesday launched a nationwide operation across 10 states and union territories, targetting an app-based investment scheme linked to the HPZ Token App, news agency PTI reported citing an official. Acting on the case of a fraudulent investment scheme, the agency conducted searches at 30 locations. 

Central Bureau of Investigation (CBI) has carried out a massive nation-wide search operation covering 30 locations across 10 States/UT including Delhi, Rajasthan, Uttar Pradesh, Bihar, Madhya Pradesh, Maharashtra, Odisha, Andhra Pradesh, Tamil Nadu and Karnataka in an on-going…

— ANI (@ANI) May 1, 2024

According to the report, the investigation centres on allegations of deceiving the public into investing in fictitious cryptocurrency mining machine rentals. 

Two private companies, Shigoo Technology Private Limited and Lillian Technocab Private Limited, along with their directors, have been implicated in the case under various sections of the Indian Penal Code and the Information Technology Act. 

The CBI seized a cache of digital devices, including laptops, and mobile phones, during the searches conducted across Delhi-NCR, Jodhpur, Mumbai, and Bengaluru, as well as locations in Tamil Nadu, Andhra Pradesh, Uttar Pradesh, Bihar, Odisha, and Madhya Pradesh. 

According to CBI, the HPZ Token App lured users with promises of significant returns through investments in mining machines for Bitcoin and cryptocurrencies. The alleged perpetrators employed a scheme that enticed victims to invest in the app, falsely guaranteeing lucrative gains from Bitcoin mining. 

The ongoing investigation has revealed the existence of 150 bank accounts linked to the accused, which were utilised for collecting funds from investors. 

“The HPZ is an app-based token that 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,” the CBI said. 

“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,” stated the CBI in a press release on Wednesday.