India financial crime unit cites ‘Chinese-controlled entities’ in alleged crypto fraud

India’s financial crime fighting agency has frozen US$1.2 million in account balances of various “Chinese-controlled entities” as part of an investigation related to alleged crypto fraud with an app-based token “HPZ” and similar applications. 

See related article: Tax authorities recover US$9M from India’s biggest crypto exchanges

Fast facts

• India’s Enforcement Directorate (ED), in a press release, identified these companies as Comein Network Technology Private Limited, Mobicred Technology Private Limited, Magic Data Technology Private Limited, Baitu Technology Private Limited, Aliyeye Network Technology India Pvt Ltd, Wecash Technology Private Limited, Larting Private Limited, Magic Bird Technology Private Limited and Acepearl Services Private Limited.

• The “fraudsters” had promised HPZ token users large returns on investments and declared it as “investing in mining machines for Bitcoin and other cryptocurrencies,” the ED said. 

• ED’s investigations revealed these companies had received money from the general public to operate other “suspicious” apps like Cashhome, Cashmart and easyloan, and were in service agreements with several non-banking financial companies. 

• ED said it had earlier frozen bank and virtual account balances of US$5.7 million during searches conducted on Sept. 14. Total amount frozen in this case now stands at US$6.9 million.

• The ED has been actively cracking down on cryptocurrency exchanges in India as well as on individuals allegedly designing apps to dupe the general public. 

See related article: 11 arrested in India’s five-year, $5.4M crypto scam

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