KOHIMA: The Directorate of Enforcement (ED) , through its Dimapur Sub-Zonal Office, filed a supplementary prosecution complaint before the Special Court under the Prevention of Money Laundering Act (PMLA) in Dimapur in connection with the HPZ Token investment scam, and the court took cognizance of the filing.
The enforcement agency had launched its probe following a cyber crime case registered in Kohima, Nagaland, alleging offences under the Indian Penal Code (IPC) linked to HPZ Token and other accused. During the course of the investigation, officials found that related cases registered by the CID in Guwahati and by the CBI in Delhi arose from the same alleged criminal activity and were therefore brought within the scope of the money laundering inquiry.
Investigators found that the HPZ Token case involved a large-scale fraudulent investment scheme in which investors across several parts of the country were induced to invest through a mobile application on the promise of unusually high returns. The inquiry revealed that the proceeds of crime were laundered through an elaborate network of mule bank accounts, shell companies and dummy directors, along with the misuse of payment aggregator services.
The investigation traced the flow of funds from investors to key accused, including Bhupesh Arora. Officials stated that money was initially collected through multiple UPI IDs linked to mule accounts held with a private bank before being routed through various shell entities. These companies allegedly channelled funds by misrepresenting transactions through payment platforms, while small amounts were returned to investors to build confidence and encourage further investments.
The proceeds were later consolidated in accounts operated by Shigoo Technology Private Limited and Lillian Technocab Private Limited, which were allegedly used to transfer funds to several other suspect entities. The agency reported that these companies were controlled by Bhupesh Arora and his associates, who allegedly relied on shell firms, mule accounts, hawala operators and foreign currency exchangers to launder the money. Arora was already under arrest in another case of a similar nature involving a separate fraudulent investment application.
The enforcement agency had earlier filed the main prosecution complaint in the case, which was already under trial. Investigators identified the total proceeds of crime in the HPZ Token scam at around Rs 2,200 crore and said that swift action had enabled the attachment of approximately Rs 650 crore that remained parked in mule accounts. Further investigation continued into the matter, stated a press release.
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