The Enforcement Directorate (ED) in India has recently seized assets worth Rs 55.36 crore ($7.4 million) linked to a Bitcoin investment scam involving the HPZ app-based token, according to a final summary report published on Wednesday. The operation was run by Bhupesh Arora and his associates, who allegedly used shell companies and Chinese entities for illegal activities such as online gaming and betting.
The ED's actions were taken under the Prevention of Money Laundering Act (PMLA), which earlier led to the freezing of accounts holding Rs 91.6 crore ($12.3 million) connected to Arora. The recent seizure is part of a broader investigation following a First Information Report (FIR) from Nagaland's capital.
Investors were enticed with promises of substantial returns - Rs 4,000 per day for three months - on an investment of Rs 57,000 ($765). This scheme attracted a significant number of investors, leading to the accumulation of considerable funds.
Nationwide searches have been conducted in response to the FIR, resulting in frozen assets worth approximately Rs 176.67 crore ($23.7 million). The ED continues its investigations to uncover the full extent of this alleged financial malfeasance.
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