The Central Bureau of Investigation (CBI) has carried out a massive nation-wide search operation covering 30 locations across 10 States/ UT in India in an on-going investigation of a case related to App based fraudulent investment scheme. The searches led to the seizure of significant digital evidence, including mobile phones, computer hard drives, SIM cards, ATM/ Debit cards, email accounts, and various incriminating documents.
CBI had registered a case against two private companies, along with their Directors, on the allegations that the accused were involved in a fraudulent investment scheme linked to the HPZ Token App. The scheme involved misleading the public into investing in non-existent crypto-currency mining machine rentals. The HPZ is an app-based token which promises users large gains by investing in mining machines for Bitcoin and other crypto currencies. The fraudsters allegedly used a modus operandi that enticed victims to invest in the HPZ token app on the pretext of astronomical returns on their investments in Bitcoin mining.
The investigation, so far, has revealed that approximately 150 bank accounts related to the accused were used to collect funds from investors. These funds were initially used for payouts to build trust, before being illicitly transferred out of India, often converted into cryptocurrency or moved through Hawala transactions.