The Aryavarth Express
Agency (Nagaland): The Directorate of Enforcement (ED) has made significant progress in a complex money laundering case by filing a Prosecution Complaint against a total of 299 accused persons and entities. This group includes 76 Chinese-controlled entities, with 10 directors of Chinese origin, and two entities controlled by other foreign nationals. The Special Court (PMLA) in Dimapur, Nagaland, recognized the gravity of the allegations and took cognizance of the offence of money laundering against these accused on March 5, 2024, indicating a strong prima facie case under the Prevention of Money Laundering Act (PMLA), 2002.
The ED’s investigation was sparked by an FIR lodged at the Cyber Crime Police Station in Kohima, Nagaland. The case involves duping innocent investors through promises of extraordinarily high returns on investments claimed to be used for Bitcoin and other cryptocurrency mining. An app-based token, known as the “HPZ Token,” was central to the scam, misleading investors about its potential profitability.
Investigations have uncovered the use of various bank accounts and merchant IDs by shell entities, established solely for rotating and layering the proceeds from this fraudulent scheme. The scheme promised returns of Rs. 4,000 per day for three months on an investment of Rs. 57,000, yet, after a single payment, victims were asked for more funds under the guise of additional investments.
In response to these findings, the ED conducted search operations across 44 locations nationwide. These efforts resulted in the freezing of Rs. 176.67 Crore held by shell entities in various bank and virtual accounts. Additionally, the ED has attached movable and immovable properties worth Rs. 278.70 Crore, owned by these dummy entities, bringing the total value of seizures and attachments to Rs. 455.37 Crore.
The ED’s ongoing investigation into this case underscores the agency’s commitment to unearthing and dismantling sophisticated financial fraud schemes that exploit digital and cryptocurrency platforms to deceive and defraud investors. Further updates on the investigation are anticipated as the ED continues to explore the depths of this extensive criminal network.
