Unmasking the Rs 1000 Crore HPZ Token Fraud: CBI's Crackdown on Cyber Crime Syndicate

The CBI filed a charge sheet against two Chinese nationals as masterminds of the HPZ Token Investment Fraud, involving Rs 1000 crore siphoned via shell companies during Covid. Using fake investment apps, they targeted Indian citizens. The CBI's investigation revealed a vast cybercrime network operated by foreign nationals.

The Central Bureau of Investigation (CBI) has brought charges against two Chinese nationals accused of orchestrating the HPZ Token Investment Fraud, a scheme that drained over Rs 1000 crore through shell companies during the Covid-19 pandemic, officials reported Wednesday. Shigoo Technology Pvt. Ltd., controlled by the suspects, allegedly used a fraudulent app claiming high returns from cryptocurrency mining to deceive the public.

This fraudulent activity was part of a larger, coordinated cybercrime network run by foreign nationals, targeting Indian citizens with loan and fake investment apps post-Covid. Investigators found victims cheated through bogus online job platforms. The suspects Wan Jun and Li Anming established infrastructure in India before fleeing, continuing operations remotely.

The CBI's continued efforts unraveled an extensive fraud operation involving 27 individuals and 30 entities. The probe exposed the misuse of emerging payment aggregator technology to rapidly transfer and launder illicit funds, reinforcing the syndicate's capability to seamlessly conduct multiple cyber scams from one centralized operation abroad.

(With inputs from agencies.)