The Indian enforcement directorate froze over $11.1 million on April 24 as part of an ongoing investigation into money laundering using a cryptocurrency called HPZ token. The funds were seized during searches conducted in three banks and payment gateway providers across the country that served entities involved in money laundering.
The months-long investigation found that two companies were responsible for collecting funds from investors under the guise of investment into the app-based HPZ token. Bhupesh Arora, the chief accused in the case, controlled one of these companies and his associates, the authorities found.
According to the authorities, Arora and his co-conspirators were using the firm and several other entities to defraud investors by operating various unregistered websites and applications for gaming and loans. Some of the firms operating these websites had Chinese connections that led to the money laundering charge.
As is common in fraud, the accused individuals promised investors huge returns if they invested in HPZ tokens. The perpetrators told investors that their returns would be generated through investment in mining machines for Bitcoin and other cryptocurrencies.
In February, the authorities seized $3.6 million from bank accounts associated with companies implicated in the case. With the latest seizure, the total assets frozen in the case reached $21.7 million. The lawsuit was initially filed in October 2021.
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