Loan app scam:  How Chinese-controlled-companies cheated people to invest in crypto through HPZ tokens

Enforcement Directorate (ED) has seized Rs 46.6 crore during multiple raids on banks and payment gateways in the alleged loan app scam. Sleuths of ED raided six business/residential premises in Delhi, Ghaziabad, Mumbai, Lucknow, and Gaya. ED also searched 16 other premises of Banks/Payment Gateways branches/offices in Delhi, Gurgaon, Mumbai, Pune, Chennai, Hyderabad, Jaipur, Jodhpur, and Bangalore in connection to an investigation related to the app-based token `HPZ’ and related entities.

When did it begin?

ED initiated a money laundering investigation on the basis of an FIR filed under various sections of IPC by Cyber Crime Police Station, Kohima, Nagaland.

HPZ was an App-Based Token that promised users large gains against investment in mining machines for Bitcoin and other cryptocurrencies.

Crime :

The modus-operandi of the fraudsters was to first lure the victims to invest in the company on the pretext of doubling their investment through HPZ Token. Payments were received from users through UPIs and other various payment gateways/nodal accounts/individuals.

The part amount was paid back to investors and the remaining amount was diverted to various individual and company accounts through various payment gateways/banks from where partly it was siphoned off in digital/virtual currencies. Later, fraudsters stopped payments and the website became inaccessible.

Investigation revealed that the HPZ token was operated by M/s Lillion Technocab Private Ltd and M/s…

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