ED attaches assets worth Rs 106.20 crore in HPZ token scam probe

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

The Enforcement Directorate (ED) on Thursday attached movable and immovable assets worth Rs 106.20 crore in connection with its probe into the alleged HPZ token scam.

The assets, attached under the Prevention of Money Laundering Act (PMLA), are located in India and Dubai and linked to shell entities, some with Chinese connections, that allegedly defrauded the investors, the ED said in a statement.

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, the ED's Dimapur Sub-Zonal Office said.

The probe stems from an FIR by Kohima's Cyber Crime Police station, which revealed 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.)