Indian Enforcement Directorate Freezes Millions in Money Laundering Investigation
The Indian enforcement directorate recently froze over $11.1 million as part of an ongoing investigation into money laundering using a cryptocurrency called HPZ token. The agency seized the funds during searches it conducted at three banks and payment gateway providers to entities involved in money laundering.
What did the investigation find?
After months of investigation, officials discovered that two companies defrauded investors by collecting funds under the pretense of investing in the app-based HPZ token. The chief accused, Bhupesh Arora, controlled one of these companies along with a group of associates. The authorities had been investigating Arora and his associates’ illegal activities.
Furthermore, the authorities said these companies and associated individuals were using various unregistered gaming and loan applications’ websites to scam investors. Investigations also found two firms operating these websites to have connections with China leading to the money laundering charges.
How did the accused scam investors?
The accused individuals promised investors enormous returns if they invested in HPZ tokens through investing in mining machines—however, this promise was nothing but a front.
Money seized in connection to the case
This case’s lawsuit was initially filed in October 2021 with $3.6 million initially seized from bank accounts associated with implicated companies in February. With the recent $11.1 million seizure, the total assets frozen in the case amount to $21.7 million.
This is an example of how scams can make anyone vulnerable regardless of how tech-savvy someone is. It also shows the importance of thorough fraud investigation to protect our financial institutions and individuals.
[h/t Monika Ghosh]