Mumbai: Enforcement Directorate (ED) has filed a Prosecution Complaint before the Hon’ble Special Court (PMLA), Dimapur, Nagaland, against 299 accused persons and entities [including 76 Chinese controlled entities (in which 10 Directors are of Chinese origin) and 02 other entities controlled by other foreign nationals]. The Hon’ble Special Court, Dimapur, Nagaland has taken cognizance of the offence of money laundering in the said Prosecution Complaint on 5/3/2024 after finding that a prima-facie case has been made out under PMLA, 2002 against the said 299 accused persons.
ED initiated investigation on the basis of FIR registered by Cyber Crime Police Station, Kohima (Nagaland) under various sections of Indian Penal Code, 1860 and Information Technology Act, in relation with duping of gullible investors, who were promised of astronomical returns on investing money [claimed to be used for the purpose of mining of Bitcoins and other Crypto Currencies] for which an App based Token by the name of “HPZ Token” was used.
Dummy Directors Used For Transactions Through Shell Entities
ED investigation revealed that various Bank accounts and Merchant IDs were opened by various shell entities having dummy directors /proprietors only for the purpose of rotation/layering of proceeds of crime representing funds fraudulently received for illegal online gaming and betting and investment for Bitcoin mining. For an investment of Rs. 57,000/-, returns of Rs. 4,000 per day for 3 months were promised but money was paid only once and thereafter fresh funds were sought.
Earlier, ED had conducted search operations at 44 locations throughout the country and an amount of Rs.176.67 Crore, maintained by shell entities in various banks/virtual accounts were frozen. Further movable & immovable properties to the extent of Rs. 278.70 Crore held in the name of dummy entities were attached. Total seizure and attachment stand at Rs. 455.37 Crore.
Further investigation is under progress.
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