Officials stated that the Central Bureau of Investigation (CBI) conducted searches at 30 locations across 10 states and union territories. This action follows the registration of a case related to a fraudulent investment scheme associated with the HPZ Token App.

According to officials, the agency has accused the scheme of deceiving the public by promoting investments in non-existent cryptocurrency mining machine rentals. The nationwide operation concluded on Tuesday night.

Authorities have registered a case against two private companies, Shigoo Technology Private Limited and Lillian Technocab Private Limited, as well as their directors under various sections of the Indian Penal Code and the Information Technology Act.

During the searches conducted across multiple states and union territories, the CBI confiscated digital devices such as laptops, mobile phones, ATM and debit cards, along with numerous email accounts.

The operation spanned locations in Delhi-NCR, Jodhpur in Rajasthan, Mumbai in Maharashtra, Bengaluru in Karnataka, as well as various sites in Tamil Nadu, Andhra Pradesh, Uttar Pradesh, Bihar, Odisha, and Madhya Pradesh.

As per CBI, the HPZ Token App operates as application-based token, enticing users with the promise of significant profits through investments in mining machines for Bitcoin and other cryptocurrencies. The agency alleges that the fraudsters employed a strategy that lured victims into investing in the HPZ token app, falsely promising them astronomical returns on their Bitcoin mining investments.

The investigation into the case has revealed 150 bank accounts linked to the accused, which were utilised to gather funds from investors. According to a statement by the CBI, these funds were initially used for payouts to establish trust among investors. Subsequently, they were illicitly transferred out of India, often converted into cryptocurrency or moved through Hawala transactions.

Image source: ANI