ED attaches assets in India and Dubai in PMLA case involving Chinese entities

The Enforcement Directorate (ED) has attached assets in India and Dubai in connection with a case under the Prevention of Money Laundering Act (PMLA) involving Chinese entities.

The Enforcement Directorate (ED) has attached assets in India and Dubai in connection with a case under the Prevention of Money Laundering Act (PMLA) involving Chinese entities.

The attachment was on a shell company in its money laundering probe in the ‘HPZ Token’ case in which numerous investors were allegedly duped through an investment fraud.

The investigation is part of the ED’s efforts to crack down on money laundering networks linked to foreign businesses operating in India. The properties are valued at Rs 106.20 crore, the federal agency said in a statement.

The assets belong to various persons and companies, including Chinese-linked shell (paper companies) entities, which were found to be involved in duping investors for hundreds of crores of rupees on the pretext of doubling their investment through the app ‘HPZ Token’ and online gaming and betting websites.

A total of 299 entities, which includes 76 Chinese-controlled entities in which 10 directors are of Chinese origin while two entities are controlled by other foreign nationals are included in the chargesheet filed by the ED.

The case involves alleged illegal financial operations and the laundering of proceeds through shell companies, hawala channels, and overseas accounts.

A network of shell companies has allegedly been used to transfer funds to China and other foreign locations, disguising the source of money. Illicit money transfers through hawala channels have been uncovered, bypassing banking systems and regulatory oversight.

The ED is likely to pursue further investigations, potentially leading to prosecution of the accused entities.

The money laundering case was based on an FIR of the cyber crimes unit of Kohima Police that booked various accused under sections of the IPC, the IT Act for allegedly duping gullible investors by promising astronomical returns by mining Bitcoins and other cryptocurrencies.

As per the reports from police, a mobile phone application named ‘HPZ Token’ was used by the accused to “cheat” the investors. It was alleged that the accused opened various “shell entities” having “dummy” directors for the purpose of “layering” the proceeds of crime.