The ED (Enforcement Directorate) said it had frozen transactions worth Rs 29.5 crore held in demat and bank accounts. The probe agency said the move follows multi-city raids in a money laundering case related to cheating investors through mobile phone-based applications (apps). This action was taken against an app-based token, HPZ, and other companies. The agency said the searches were conducted in Delhi, Gurugram, Mumbai, Bengaluru and Salem.
The ED had also conducted raids in this case last year and had frozen transactions of about Rs 56 crore in deposits. A money laundering case was registered against the company and its associated people based on an FIR registered in October 2021 by the Cybercrime Unit of the Kohima Police in Nagaland.
The agency said, “HPZ was an app-based token that promised higher returns on investing in mining machines for bitcoin and other cryptocurrencies.”
It was also said that two companies – Lillian Technocab Pvt Ltd and Shigu Technology Pvt Ltd, were involved in collecting money from investors and operating in the name of HPZ.