December 6, 2022

India’s financial watchdog, Enforcement Directorate (ED), confiscated $1.2 million in an investigation of a fraud scheme relying on an App-based token, HPZ. Per an official press release published on September 29, several apps offered users to buy the HPZ tokens to have higher returns. And the investigations revealed that the “Chinese-controlled entities” were behind the scam.

Cryptocurrency has seen wide adoption in recent years. And since digital assets became the mainstream exchange source in everyday life, it opened a way for fraudsters to deceive people and wipe out their money anonymously in the crypto. Consequently, the increasing number of crypto scams and fraud activities awakened the global law enforcement agencies to protect users and fight illegal operators.

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The FIR, filed on October 2021 in the Cyber Crime Police Station of Kohima, Nagaland, triggered the investigations into the accused app by the Indian financial watchdog ED. Victims in the complaints cited that the HPZ token app and other similar apps duped investors’ hard-earned money.

Furthermore, ED’s probe uncovered several organizations in China that were connected to the HPZ token scams and operated it with multiple applications. The companies, per the authority, include Larting Private Limited, Mobicred Technology Private Limited, Magic Data Technology Private…

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