The Indian Enforcement Directorate conducted raids on different bank accounts controlled by Bhupesh Arora and his associates. The investigation revealed that they were misusing app based cryptocurrency known as HPZ to operate unregistered gaming apps and websites.
ED has frozen around Rs. 91.6 crore by investigating three banks/payment gateways in Gurugram, Mumbai, and Bangalore used for money laundering.
An investigation was set in motion following an FIR lodged by the Cyber Crime Police Station in Kohima, Nagaland related to HPZ Token.
HPZ token is an app based token, whose website promises users large gains for investing in mining machines for Bitcoin and other cryptocurrency.Â
The probe, which initially began under various sections of IPC, took a turn when the ED uncovered a more elaborate scheme involving multiple players in money laundering.
Further investigations revealed that Lillian Technocab Pvt. Ltd and Shigoo Technology Private Limited were also involved in the operation, and had been collecting money from unsuspecting investors in the guise of HPZ Tokens.
Bhupesh Arora and his associates were at the helm of Shigoo Technology Private Limited, which had been operating unregistered gaming apps and websites that fraudulently extracted money from the public.
During the ED’s search, an astounding Rs. 91.6 crores was seized from various bank accounts and merchant accounts, which were frozen as a result. Earlier, the ED had frozen bank and virtual account balances totaling Rs. 56.67 crores during searches on September 2022. The total amount frozen now stands at Rs. 178 crores.
Also Read: ED Freezes ₹10 Cr Worth of Account Balance Linked to Chinese Entities
