CBI conducts raids in crypto fraud case

The scheme allegedly involved misleading the public into investing in nonexistent crypto-currency mining machine rentals.

Hyderabad: The Central Bureau of Investigation (CBI) has carried out a massive nationwide search operation covering 30 locations across 10 States and union Territory in India in an ongoing investigation of App-based fraudulent investment schemes.

During the searches, the CBI seized significant digital evidence, including mobile phones, computer hard drives, SIM cards, ATM/ Debit cards, email accounts, and various incriminating documents.

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The CBI had registered a case against two private companies, along with their Directors, on the allegations that the accused were allegedly involved in a fraudulent investment scheme linked to the HPZ Token App.

The scheme allegedly involved misleading the public into investing in nonexistent 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 cryptocurrencies. 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, 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, the CBI maintained.