The Enforcement Directorate (ED) has conducted search operations and frozen  account balances of Rs  9.82 crore of various Chinese-controlled entities maintained with payment gateways, in connection with an investigation relating to the misuse of App-based token named “HPZ” and other similar applications by several entities.

The searches under the Prevention of Money Laundering Act (PMLA) were conducted against Comein Network Technology Private Limited, Mobicred Technology Private Limited, Magic Data Technology Private Limited, Baitu Technology Private Limited, Aliyeye Network Technology India Pvt Ltd, Wecash Technology Private Limited, Larting Private Limited, Magic Bird Technology Private Limited and Acepearl Services Private Limited.

The ED initiated money laundering investigation on the basis of an FIR dated October 8, 2021 filed under various IPC sections by Cyber Crime Police Station, Kohima, Nagaland, against HPZ token and others. “The HPZ Token was an ‘App-Based Token’, which promised users of large gains against investment by declaring the same as ‘investing in mining machines for Bitcoin and other cryptocurrencies’,” the ED said in a statement.

 The modus-operandi of the fraudsters was to first lure the victims to invest in their companies on the pretext of doubling / multiplying their investment through the “app HPZ Token” and other similar applications, it said.

The ED probe has revealed that various Chinese-controlled entities like Comein Network Technology Private Limited and others, in service agreements with various NBFCs were also operating multiple suspicious loan/others Apps (such as Cashhome, Cashmart, easyloan etc.) and indulged in receiving funds from public on the pretext of operating these Apps.

The ED had earlier frozen bank/virtual account balances amounting to Rs 46.67 crore during the searches conducted on September 14. With the present action, total frozen assets in the case stand at Rs 56.49 crore.