The Enforcement Directorate (ED) has carried out searches and frozen account balances of Rs 9.82 crore of nine Chinese-controlled entities with respect to an investigation relating to the misuse of App-based token named “HPZ” and other similar applications by several entities under money laundering probe, the agency said on Thursday.
The action has been taken against entities like 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.
ED initiated a money laundering investigation on the basis of the First Information Report (FIR) dated October 8, 2021, filed under various sections of the Indian Penal Code, 1860, by Cyber Crime Police Station, Kohima, Nagaland, against HPZ tokens and others.
The HPZ Token was an “app-based token,” which promised users large gains against investment by declaring the same as “investing in mining machines for Bitcoin and other cryptocurrencies,” said the ED.