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CBI Raids Uncover Crypto Investment Fraud in India
The Central Bureau of Investigation (CBI) in India has launched a nationwide search operation as part of an ongoing investigation into an app-based crypto fraudulent investment scheme.
Operation Details
The operation spans 30 locations across 10 states and Union Territories, aiming to crack down on individuals and companies involved in the HPZ Token App scheme.
Accusations and Seizures
The searches targeted two private companies and their directors, accused of misleading the public and enticing them to invest in a non-existent cryptocurrency mining machine rental scheme. Incriminating documents and crucial digital evidence were seized during the raids.
HPZ Token App Promised High Returns
The HPZ Token App promised users high returns on their investments through mining machines for popular cryptocurrencies like Bitcoin. Fraudsters lured victims by guaranteeing astronomical profits from Bitcoin mining investments.
Investigation Findings
The investigation has identified approximately 150 bank accounts allegedly used by the accused to collect funds from investors. Initial payouts to some investors were likely intended to build trust before funds were transferred abroad through various means.
Recent Crackdowns in India
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. Frozen crypto assets worth ₹90 crore were seized, linked to major crypto wallets Binance, ZebPay, and WazirX.
Indians Investing in Crypto
A recent survey by Mudrex revealed that nearly half of individuals with retirement plans in India have entered the realm of crypto. The survey also highlighted the evolving perception of cryptocurrencies as a mainstream asset class, with 50% of respondents believing that cryptocurrencies would become the primary asset class within the next five years.
Impact on Indian Crypto Exchanges
The recent surge in the price of Bitcoin has injected fresh life into Indian cryptocurrency exchanges, with trading volumes on top platforms reaching a ten-month high in February. Leading exchanges like CoinDCX, WazirX, and BitBNS recorded significant trading volumes last month.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
