Nagaland: ED files second supplementary charge sheet in HPZ Token Crypto investment scam

KOHIMA: The Enforcement Directorate (ED) has filed a second supplementary prosecution complaint in the HPZ Token cryptocurrency investment scam before the Special Court for PMLA cases in Dimapur, Nagaland. The case originates from three FIRs registered by the Cyber Crime Police Station, Kohima, Nagaland, the CID PS, Ulubari, Guwahati, and the CBI, Delhi, leading to the registration of an ECIR on April 12, 2022.

The main prosecution complaint was filed on March 4, 2024, followed by the first supplementary complaint on January 12, 2026. The second supplementary complaint continues the investigation, adding 87 new accused individuals, bringing the total number of accused to 437, including 350 from the main and first supplementary complaints. These new accused include payment gateway companies, fintech intermediaries, e-commerce entities, and their directors across multiple states.

HPZ Token was a fraudulent cryptocurrency investment scheme that promised high returns through Bitcoin mining. The scam began in June 2021 and shut down in August 2021, leaving investors unable to access their funds. Bhupesh Arora and associates are believed to be the key conspirators, using shell companies, mule accounts, and hawala operators to launder the illicit funds.

The investigation has also uncovered a pattern of involvement by Chinese-linked entities. One such entity, M/s Zhudao Infotech Private Limited, was found to be acting as a payment aggregator without an RBI license, facilitating money laundering through fake businesses. Multiple Chinese nationals have been named as part of the scam, including Linlei Yuan, Zhou Jie, and Ming Lou.

Other entities, such as M/s Paygate India Pvt. Ltd. and M/s Safexpay Technology, are accused of misusing their payment gateway infrastructures to launder the proceeds of crime from various illegal schemes. The total identified proceeds amount to approximately Rs 2200 crore, with Rs 662 crore frozen by the ED so far. Further investigations are ongoing. (IANS)

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