HPZ Token App case: CBI launches massive crackdown across India; seizes hard drives, ATM cards

Hyderabad: Central Bureau of Investigation (CBI) launched a massive search operation across 30 locations in 10 states and union territories in an ongoing investigation related to an app-based fraudulent investment scheme case.

The searches led to the seizure of significant digital evidence, including mobile phones, computer hard drives, SIM cards, ATM/ Debit cards, email accounts, and various incriminating documents.

CBI had registered a case under section 120-B r/w 419, 420 IPC and section 66 D of the Information Technology Act, 2000 against two private companies, along with their directors, on the allegations that the accused were involved in a fraudulent investment scheme linked to the HPZ Token App.

The scheme involved misleading the public into investing in non-existent crypto-currency mining machine rentals. The HPZ is an app-based token that promises users large gains by investing in mining machines for Bitcoin and other cryptocurrencies.

The fraudsters' modus operandi included enticing victims to invest in the HPZ token app on the pretext of astronomical returns on their investments in Bitcoin mining. 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. Searches conducted in this case are a critical step in the ongoing investigation to dismantle the fraudulent scheme and gather evidence against the accused. Further investigation is continuing, CBI said.