KOHIMA: A special court in Dimapur, Nagaland, declared Bhupesh Arora the "kingpin" of the Rs. 2,200 crore crypto currency scam involving the HPZ Token, and designated him a fugitive under the Fugitive Economic Offenders Act (FEOA) of 2018.
Arora, a Delhi native, is suspected to have fled to Dubai, according to the Enforcement Directorate on Thursday. The court issued its order on Wednesday concerning a case originally filed by the cyber crime police station in Kohima, the capital of Nagaland, which was later handed over to the ED.
The ED's investigation revealed that numerous unsuspecting investors from across the country were deceived with promises of huge returns on investments for Bitcoin and other cryptocurrency mining, using an app-based token called "HPZ Token."
The proceeds of crime uncovered so far amount to Rs. 2,200 crores, with Rs. 497.20 crores already attached and frozen by the ED. The court's declaration now enables the investigation agency to seize all of Arora's assets.
“Investigation revealed that huge funds collected by cheating general/gullible public all over India were diverted to various shell companies and individuals/proprietorship concerns through various fraudulent schemes.
During the course of the PMLA investigation, statements of individuals, proprietors/directors were recorded which revealed that one Bhupesh Arora and his close associates were the persons behind such fraudulent schemes and cheating the gullible public in all parts of India.
Subsequently, at the behest of Arora, the said deposited amount was further transferred to create an untraceable layer of transactions and after several layers, the substantial money was also siphoned out of India," the ED said in a statement on Thursday.
The ED has attached nine immovable properties worth Rs. 2.05 crores in Delhi, owned by Arora, along with 286 bank and virtual accounts containing Rs. 459.79 crores across 20 states, including Delhi, Maharashtra, Rajasthan, Assam, Uttar Pradesh, Chhattisgarh, Madhya Pradesh, Odisha, and Telangana.
The ED also revealed that Arora had established over 200 companies, including private limited ones, either in his own name or under the names of his relatives and close associates, to create an untraceable layer for money laundering.
The ED stated that Arora failed to appear in response to summons issued under section 50(2) of the PMLA, 2002, as well as another summons order from the Gauhati High Court, Kohima bench, on September 25, 2023. A non-bailable warrant was issued by the court in July 2024.
According to the ED, the accused left India for Dubai in September 2022, after the PMLA case was initiated, to evade criminal prosecution and has refused to return to India to face the charges.