Northeast Desk, 6th March: The Enforcement Directorate (ED) has filed a Prosecution Complaint (PC) before the Special Court (PMLA), Dimapur, Nagaland, targeting 299 accused individuals and entities. Among these, 76 are Chinese-controlled entities, with 10 directors of Chinese origin, and two entities controlled by other foreign nationals.
The Special Court, Dimapur, Nagaland, acknowledged the Prosecution Complaint on March 5, 2024, after determining a prima facie case under the Prevention of Money Laundering Act, 2002 against the accused.
The ED’s investigation stemmed from an FIR lodged by the Cyber Crime Police Station, Kohima (Nagaland), concerning fraudulent activities promising high returns to investors through investments in cryptocurrencies, particularly using an App-based Token named “HPZ Token”.
During the investigation, it was uncovered that shell entities with dummy directors/proprietors were utilized to open various bank accounts and merchant IDs. These accounts facilitated the rotation/layering of proceeds of crime derived from illegal online gaming, betting, and Bitcoin mining investments.
Promises of substantial returns on investments, such as Rs. 4,000 per day for three months against an initial investment of Rs. 57,000, were made to investors. However, payments were made only initially, with subsequent requests for additional funds.
Earlier, the ED conducted search operations at 44 locations across the country, resulting in the freezing of Rs. 176.67 Crore held by shell entities in various banks/virtual accounts. Additionally, movable and immovable properties worth Rs. 278.70 Crore, held in the name of dummy entities, were attached. The total seizure and attachment amount to Rs. 455.37 Crore.
The investigation into this elaborate financial scheme continues as the ED delves deeper into the intricate network of fraudulent activities and individuals involved.