CBI conducts nationwide searches in app-based crypto fraud case

Mumbai,UPDATED: May 1, 2024 13:21 IST

The Central Bureau of Investigation (CBI) conducted a nationwide search operation as part of an ongoing investigation into an app-based fraudulent investment scheme.

The searches, spanning 30 locations across 10 Indian states and Union Territories, targeted two private companies and their directors accused of involvement in the HPZ Token App scheme.

Incriminating documents along with crucial digital evidence like mobile phones, hard drives, SIM cards, debit cards, email accounts were seized during the searches.

The CBI alleges the companies misled the public into investing in non-existent cryptocurrency mining machine rentals. The HPZ app promised users high returns through investments in mining machines for Bitcoin and other cryptocurrencies.

Investigators said the fraudsters enticed victims to invest in the app by guaranteeing astronomical returns on Bitcoin mining investments. So far, the probe has identified around 150 bank accounts allegedly used by the accused to collect funds from investors.

Investigation suggests that initial payouts were likely used to build trust with investors before funds were illicitly transferred abroad, often converted into cryptocurrency or moved through Hawala transactions.

Further investigation in the case is on.