The Law Enforcement (ED) Directorate seized Rs 46.6 crore in several raids on banks and payment gateways in connection with the alleged loan app scam. ED detectives raided six commercial/residential premises in Delhi, Ghaziabad, Mumbai, Lucknow and Gaya. ED also searched 16 other bank branch/office/payment gateway premises in Delhi, Gurgaon, Mumbai, Pune, Chennai, Hyderabad, Jaipur, Jodhpur and Bangalore in an investigation related to the app-based token “HPZ” and Other Entities.
When did it start?
ED initiated a money laundering investigation based on an FIR filed under various sections of the IPC by the Cyber Crime Police Station, Kohima, Nagaland.
HPZ was an app-based token that promised users significant gains compared to investing in bitcoin mining machines and other cryptocurrencies.
The modus-operandi of the fraudsters was first to entice the victims to invest in the company under the pretext of doubling their investment via HPZ Token. Payments were received from users through UPIs and other payment gateways/node accounts/individuals.
Part of the amount was refunded to the investors and the remaining amount was diverted to various individual and corporate accounts through various payment gateways/banks from where it was partly diverted into digital/virtual currencies. Later, the scammers stopped the payments and the website became inaccessible.
The investigation revealed that the HPZ token was operated by M/s Lillion Technocab Private Ltd and M/s Shigoo Technology Private Limited. M/s Shigoo Technology Private Limited was also found linked to various Chinese-controlled companies.
It has also been revealed that various other companies are indulged in receiving funds from the public under the guise of operating various applications/websites for games/loans/others. ED suspects the involvement of M/s Jilian Consultants India Pvt Ltd, Gurugram behind various companies involved in these frauds.
One of these entities, M/s Mad-Elephant Network Technology Private Limited, in agreement with X10 Financial Services Limited, operated various lending applications (Yo-Yo cash, Tufan Rupees, Coco cash, etc.). Similarly, Su Hui Technology Private Limited, in agreement with M/s Nimisha Finance India Private Limited, operated lending applications.
During the search, various incriminating documents were recovered and seized. Huge balances were found to be maintained in virtual accounts of entities involved with payment aggregators.
Rs. 33.36 Crore was found with Easebuzz Private Limited, Pune, Rs. 8.21 Crore with Razorpay Software Private Limited, Bangalore, Rs. 1.28 Crore with Cashfree Payments India Private Limited, Bangalore and Rs. 1.11 Crore with Paytm Payments Services Limited, New Delhi. A total amount of around Rs. 46.67 Crore has been detected and frozen in various bank and virtual accounts.