The Enforcement Directorate (ED) announced on Wednesday the submission of a charge sheet under anti-money laundering laws against 299 entities, including 10 individuals of Chinese descent, linked to alleged investor fraud in cryptocurrency mining like Bitcoins.
As reported by The Telegraph, a special court in Dimapur, Nagaland, acknowledged the complaint filed under the Prevention of Money Laundering Act (PMLA) on Tuesday.
The accusation involves 299 entities, with 76 under Chinese control, including 10 directors of Chinese descent, and two controlled by foreign nationals. The investigation stems from an FIR filed by the Cyber Crimes Unit of the Kohima Police.
Charges were filed against multiple individuals under the Indian Penal Code (IPC) and the Information Technology Act for purportedly misleading investors with promises of high returns through Bitcoin and other cryptocurrency mining schemes.
Authorities revealed the accused utilized the “HPZ Token” mobile app to deceive investors, establishing “shell entities” with fake directors to launder illicit funds through bank accounts and merchant IDs.
The funds were obtained under false pretenses, supposedly for illegal activities like online gaming, betting, and Bitcoin mining investments.
Investors were promised daily returns of Rs 4,000 for three months with an initial investment of Rs 57,000, but after one payout, further funds were demanded. The ED conducted nationwide searches, resulting in the seizure of assets and deposits worth Rs 455 crore.
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