India’s Central Bureau of Investigation (CBI) has launched a nationwide search operation as part of an ongoing investigation into a fraudulent investment scheme involving a crypto app. The operation, which spans across 30 locations in 10 states and Union Territories, aims to crack down on individuals and companies involved in the HPZ Token App scheme. According to a report from India Today, the CBI’s searches targeted two private companies and their directors who are accused of misleading the public and enticing them to invest in a non-existent cryptocurrency mining machine rental scheme. During the raids, incriminating documents and crucial digital evidence such as mobile phones, hard drives, SIM cards, debit cards, and email accounts were seized.
The HPZ Token App promised users high returns on their investments through mining machines for popular cryptocurrencies like Bitcoin. The fraudsters lured unsuspecting victims by guaranteeing astronomical profits from Bitcoin mining investments. The investigation has identified approximately 150 bank accounts allegedly used by the accused to collect funds from investors. Initial payouts made to some investors were likely intended to build trust before the funds were surreptitiously transferred abroad. In many cases, the money was converted into cryptocurrencies or moved through Hawala transactions, an informal method of money transfer.
The CBI’s crackdown on this app-based crypto investment fraud comes shortly after the Directorate of Enforcement (ED) of India announced the seizure of a major crypto money laundering case connected to a gaming app. The authority also seized frozen crypto assets worth ₹90 crore ($10 million) in connection with the scam. The frozen cryptos were kept in 70 accounts linked to major crypto wallets Binance, ZebPay, and WazirX.
In a recent survey conducted by Mudrex, it was revealed that nearly half of individuals with retirement plans in India have invested in cryptocurrencies. The survey focused on crypto investments and found that 45% of users with retirement plans have allocated funds to cryptocurrencies. The survey also highlighted the evolving perception of cryptocurrencies as a mainstream asset class, with 50% of respondents believing that cryptocurrencies will become the primary asset class within the next five years. This indicates a rise in confidence and acceptance within the crypto space.
The recent surge in the price of Bitcoin has injected fresh life into Indian cryptocurrency exchanges, with trading volumes on the top platforms reaching a ten-month high in February. CoinDCX, WazirX, and BitBNS, the leading Indian exchanges, recorded trading volumes of $2.6 million, $3.4 million, and $7.8 million last month, respectively.