CBI conducts searches in HPZ cryptocurrency token fraud case

New Delhi [India], October 4 (ANI): The Central Bureau of Investigation (CBI), as part of its ongoing Operation Chakra-V against cybercrimes, has carried out searches in the HPZ cryptocurrency token fraud case, exposing a sophisticated and large-scale transnational cyber fraud running into hundreds of crores of rupees, the agency said in a release.
On October 3, coordinated search operations were conducted at seven locations across Delhi NCR, Hyderabad, and Bengaluru, leading to the recovery of incriminating digital evidence and financial records.
The case, registered under criminal conspiracy, impersonation and fraud and offences under Information Technology Act, pertains to an elaborate criminal conspiracy orchestrated by foreign-based masterminds in collusion with Indian nationals, it said.
Between 2021 and 2023, organized cyber frauds were committed across India in the guise of Loan, Job, Investment, and Cryptocurrency Schemes. These frauds were facilitated through the creation of multiple shell companies, which were used to open mule bank accounts. The proceeds collected from victims were routed through these accounts, converted into cryptocurrencies, and subsequently transferred outside India through complex financial layering and crypto conversion routes.

The investigation has revealed that several shell entities were incorporated in India at the instance of foreign perpetrators. These companies were onboarded on various FinTech and payment aggregator platforms to collect and channel the public funds.
The funds collected were consolidated, converted into cryptocurrencies, and transferred to various Crypto Wallets, eventually being remitted across borders to conceal the proceeds of crime.
The CBI has arrested five accused for their active involvement in executing the fraud. They are being produced before the competent court as per due process of law.
Further investigation is underway to trace the cross-border financial trails, identify other individuals and entities involved, and unravel the full extent of the conspiracy.
CBI remains committed to combating cyber-enabled financial crimes through sustained intelligence-led operations, inter-agency coordination, and the use of advanced digital forensics to counter complex transnational fraud networks. (ANI)