The Indian enforcement directorate has frozen over $11.1 million in an ongoing investigation into money laundering using the cryptocurrency HPZ token. The funds were seized during searches conducted at three banks and payment gateway providers across the country that served entities involved in money laundering. The investigation found that two companies collected funds from investors under the guise of investment in the app-based HPZ token. Bhupesh Arora controlled one of these companies and his associates, according to authorities. Arora and his co-conspirators were using the firm and several other entities to defraud investors by operating various unregistered websites and applications for gaming and loans. The accused individuals promised investors huge returns if they invested in HPZ tokens, generated through investment in mining machines for Bitcoin and other cryptocurrencies. In October 2021, the lawsuit was filed, and in February, the authorities seized $3.6 million from bank accounts associated with companies implicated in the case. The total assets frozen in the case now amount to $21.7 million.

(By Monika Ghosh)