Enforcement Directorate Cracks Down on HPZ Token Scam with Asset Attachments Worth Rs 106.20 Crore

The Enforcement Directorate (ED) has attached assets worth Rs 106.20 crore across India and Dubai linked to the alleged HPZ token scam. This operation targets shell entities involved in defrauding investors with promises of doubling their investments through an app and online gaming sites.

The Enforcement Directorate (ED) took a significant step on Thursday in its investigation into the alleged HPZ token scam by attaching movable and immovable assets valued at Rs 106.20 crore. These assets are located in India and Dubai and are linked to shell entities, some with Chinese connections, that reportedly defrauded investors.

According to the ED's Dimapur Sub-Zonal Office, the proceeds of crime were attached as part of efforts to recover funds swindled from investors under the guise of investment schemes promising vast returns. These schemes utilized the 'HPZ Token' app and online gaming and betting websites to lure victims.

The investigation stemmed from an FIR by Kohima's Cyber Crime Police station, revealing that investors were duped into believing they could earn substantial returns by investing in Bitcoin and other cryptocurrencies through the 'HPZ Token'. While initial returns were given to build trust, further investments resulted in the siphoning off of funds, and eventually, the app and websites were shut down, rendering them inaccessible to the investors.

The ED's current action follows previous measures, including searches at 44 nationwide locations, freezing balances of Rs 176.67 crore, and the attachment of Rs 320.53 crore. To date, the Dimapur unit has frozen and attached proceeds totaling Rs 603.40 crore as part of this investigation.

(With inputs from agencies.)