ED attaches assets in India, Dubai linked to Chinese entities in PMLA case

The Enforcement Directorate on Thursday said it has attached fresh assets in India and Dubai, including those belonging to some Chinese-linked shell companies, in its money laundering probe in the 'HPZ Token' case in which numerous investors were allegedly duped through an investment fraud.

The properties are valued at Rs 106.20 crore, the federal agency said in a statement. It had attached assets in this case earlier too.

The assets belong to various persons and companies, including Chinese-linked shell (paper companies) entities, which were found to be involved in duping investors for hundreds of crores of rupees on the pretext of doubling their investment through the app 'HPZ Token' and online gaming and betting websites, it said.

A total of 299 entities, which includes 76 Chinese-controlled entities in which 10 directors are of Chinese origin while two entities are controlled by other foreign nationals, have been named as accused in the chargesheet filed by the ED in this case in March.

The money laundering case stems from an FIR of the cyber crimes unit of Kohima Police that booked various accused under sections of the IPC, the IT Act for allegedly duping gullible investors by promising astronomical returns by mining Bitcoins and other cryptocurrencies.

The police said a mobile phone application named 'HPZ Token' was used by the accused to "cheat" the investors.

The agency said bank accounts and merchant IDs were opened by various "shell entities" having "dummy" directors for the purpose of "layering" the proceeds of crime.

These funds were "fraudulently" received for illegal online gaming and betting and investment for Bitcoin mining, it claimed.

For an investment of Rs 57,000, returns of Rs 4,000 per day for three months were promised but money was paid only once and thereafter fresh funds were sought by the accused from the investors, the ED had said.

Country-wide searches were undertaken by the ED in this case leading to the seizure of immovable assets and deposits worth Rs 603 crore till now, including the fresh attachment.