WPL: RCB chase down highest ever total, beat GG by 6 wickets
The Enforcement Directorate (ED) has frozen approximately ₹500 crore in virtual accounts connected to eight payment gateways as part of its investigation into the HPZ Token cryptocurrency scam, one of India’s largest frauds. The scam is reportedly operated by a group of 10 Chinese nationals who allegedly defrauded investors of over ₹2,200 crore across 20 states in India. The accused orchestrated the scam by enticing individuals to invest in cryptocurrency mining, particularly Bitcoin, through the HPZ Token mobile app, promising high returns.
The scam involved the creation of companies across multiple states, including Delhi, Karnataka, Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh, Telangana, and West Bengal. The accused established a network of over 200 bank accounts to launder the funds collected from investors. These funds were routed through payment gateways like PayU, Easebuzz, Razorpay, CashFree, and Paytm. According to the ED, a significant portion of the funds was frozen during the transaction holding period before being transferred abroad.
The ED is examining whether the payment gateways complied with regulatory requirements by filing Suspicious Transaction Reports (STRs). These STRs are mandatory under the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA) and must be submitted to the Reserve Bank of India (RBI) and the Financial Intelligence Unit (FIU) when transactions raise suspicion. The investigation is focused on determining whether these platforms flagged the fraudulent transactions, as they are legally required to do when detecting suspicious financial activities.
The accused utilized multiple payment gateways and over 200 bank accounts to route funds across states. For example, in Delhi, over 50 companies were involved, using 84 bank accounts. In Karnataka, 26 companies operated with 37 bank accounts, while companies in Uttar Pradesh, Maharashtra, Gujarat, and West Bengal used several other accounts to move the money. The ED has frozen ₹130 crore in PayU, ₹33.4 crore in Easebuzz, ₹18 crore in Razorpay, ₹10.6 crore in CashFree, and ₹2.8 crore in Paytm. Other platforms such as WunderBaked, AgreePay, and SpeedPay are also under investigation for their involvement in processing the fraudulent transactions.
The investigation was triggered by a case filed at the Cyber Crime Police Station in Kohima, Nagaland, where the accused were charged under various sections of the Indian Penal Code and the Information Technology Act. The ED’s probe is focused on uncovering the mechanisms used to launder the illicit funds, including any complicity by financial institutions, and whether the accused utilized any international channels to funnel the money abroad. The agency is also tracking the movement of funds across borders, as some of the money was allegedly sent overseas.
A significant development in the case occurred on January 22, 2025, when Bhupesh Arora, a key accused, was declared a fugitive economic offender by a PMLA court in Nagaland. Arora, who fled to Dubai in 2022 after being summoned by the ED, ignored a non-bailable warrant issued against him. The chargesheet names 298 individuals who are suspected of being involved in this extensive fraud. The ED continues its efforts to locate these individuals and trace the flow of illicit funds linked to the scam.