The Enforcement Directorate (ED) has filed a Prosecution Complaint (PC) against 299 accused persons and entities before the Special Court in Dimapur under the Prevention of Money Laundering Act (PMLA) in connection to the ongoing HPZ app-based token scam case.

The ED on Wednesday informed that the accused includes 76 Chinese controlled entities in which ten directors are of Chinese origin and two other entities controlled by other foreign nationals.

The 299 persons and entities are accused of “duping of gullible investors, who were promised of astronomical returns on investing money [claimed to be used for the purpose of mining of Bitcoins and other Crypto Currencies] for which an App based Token by the name of “HPZ Token” was used.”

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The ED investigation began on the basis of an FIR registered by Cyber Crime Police Station, Kohima (Nagaland) under various sections of Indian Penal Code, 1860 and Information Technology Act.

The probe revealed that various bank accounts and Merchant IDs were opened by various shell entities having dummy directors/proprietors only for the purpose of rotation/layering of proceeds of crime representing funds fraudulently received for illegal online gaming and betting and investment for Bitcoin mining, ED stated in its press release on Wednesday. For an investment of Rs. 57,000, returns of Rs. 4,000 per day for 3 months were promised but money was paid only once and thereafter fresh funds were sought, it added.

The Enforcement Directorate had earlier conducted search operations at 44 locations throughout the country and froze Rs176.67 Crore in banks and further attached Rs 278.70 Crore worth movable and immovable properties. In total Rs 455.37 crore worth seizure and attachment have been made in connection to the HPZ token scam, ED said.