CBI conducts nationwide search against app-based fraudulent investment scheme
The agency has alleged the scheme involved misleading the public to invest in non-existent crypto-currency mining machine rentals. The nationwide operation ended Tuesday night.
New Delhi: The Central Bureau of Investigation (CBI) conducted a nationwide search operation as part of an ongoing investigation into an app-based fraudulent investment scheme, officials said Wednesday. The central agency searched 30 locations across 10 states and union territories in the HPZ Token App.
The searches were spread across Delhi-NCR, Jodhpur in Rajasthan, Mumbai in Maharashtra, Bengaluru in Karnataka as well as locations in Tamil Nadu, Andhra Pradesh, Uttar Pradesh, Bihar, Odisha and Madhya Pradesh.
Two private companies, Shigoo Technology Private Limited and Lillian Technocab Private Limited, along with their directors were booked in the case under Indian Penal Code Sections 120-B (criminal conspiracy) 419, 420 (cheating) and Section 66 D of Information Technology Act, 2000, officials said.
Incriminating documents, digital evidence seized
The searches led to the seizure of significant digital evidence, including mobile phones, computer hard drives, SIM cards, debit cards, email accounts, and various incriminating documents.
The CBI alleged that 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 CBI said.
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," the CBI said in a statement on Wednesday. Further investigation is continuing.
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