India’s CBI Conducts Nationwide Search Operation in Crackdown on App-Based Crypto Investment Fraud

cryptonews.com:

The Central Bureau of Investigation (CBI) in  India  has  launched a nationwide search operation as part of an ongoing investigation into an app-based crypto fraudulent investment scheme. 

The operation, spanning 30 locations across  10  states and Union Territories, aims to crack down on individuals and companies involved in the HPZ Token App scheme , according to a  report from India Today .

Per the report, the  CBI’s  searches targeted two private companies and their directors, who stand accused of misleading the public and enticing them to invest in a non-existent  cryptocurrency mining machine rental scheme . 

During the raids, incriminating documents and crucial digital evidence such as mobile phones, hard drives, SIM cards, debit cards, and email accounts were seized .

The HPZ Token App promised users high returns on their investments through mining machines for popular cryptocurrencies like Bitcoin. 

The fraudsters lured unsuspecting victims by guaranteeing astronomical profits from Bitcoin mining investments. 

The investigation has  so far  identified approximately 150 bank accounts allegedly used by the accused to collect funds from investors.

#CBI today conducted raids across 30 locations in 10 states and Union Territories as part of an investigation into a fraudulent investment scheme linked to the HPZ Token App. The investigation is regarding #misleading the public into investing in a non-existent #cryptocurrency… pic.twitter.com/R0Be4zQOm6

— All India Radio News (@airnewsalerts) May 1, 2024

According to investigators, the initial payouts made to some investors  were likely intended  to build trust before  the funds were surreptitiously transferred  abroad. 

In many cases,  the money was converted