The ED froze Proceeds of Crime (POC) worth ₹12.5 crore, in the form of bank balances, fixed deposits and mutual funds, as part of its money-laundering probe into an alleged multi-crore fraud against multiple investors on the pretext of doubling their investment through the app, HPZ Token
MUMBAI: The Enforcement Directorate (ED) froze Proceeds of Crime (POC) worth ₹12.5 crore, in the form of bank balances, fixed deposits and mutual funds, as part of its money-laundering probe into an alleged multi-crore fraud against multiple investors on the pretext of doubling their investment through the app, HPZ Token, and online gaming and betting websites.
The agency also seized incriminating documents and digital devices during searches on Thursday, carried out at 11 residential and business premises of the key persons involved in the case, in Navi Mumbai, Thane, Gurugram and Delhi, ED sources said.
During the searches, statements of the key persons, who were either beneficiary of the POC or actively aided the mastermind in the case, were recorded by the agency, from which it got details of multiple movable and immovable properties and, subsequently the ₹12.5 crore POC were frozen.
The probe revealed that typically, for an investment of ₹57,000, return of ₹4,000 daily for 90 days was allegedly promised to gullible investors. Initially, returns were allegedly paid to gain confidence, leading to more investments by them. Eventually, the investments were diverted, and the app became inaccessible, according to the agency.
The ED investigation was based on a case registered by the Cyber Crime police station in Kohima, Nagaland, for offences committed under various sections of the Indian Penal Code and the Information Technology Act, with the aim to dupe gullible investors by promising astronomic returns.
The investors were allegedly asked to invest their funds in mining of Bitcoin and other Crypto Currencies, for which the app-based token, HPZ Token, was used. ED has so far conducted searches at 44 locations throughout the country. So far, the total POC frozen and attached by its Dimapur sub-zonal office is over ₹615.90 crore.