The Enforcement Directorate has filed a chargesheet under anti-money laundering laws against 299 entities, including 10 individuals of Chinese origin. This action follows an investigation into allegations of defrauding investors through schemes involving mining cryptocurrencies like Bitcoins, stated the ED.
The ED stated that a special court in Dimapur, Nagaland, has acknowledged the prosecution complaint filed under the Prevention of Money Laundering Act (PMLA).
The statement revealed that a total of 299 entities have been listed as accused, including 76 entities under Chinese control, with 10 directors of Chinese origin and two controlled by other foreign nationals.
ED launched a money laundering case following an FIR filed by the Cyber Crimes Unit of the Kohima Police. The Kohima Police had registered cases against several individuals under the Indian Penal Code and the Information Technology Act. They were accused of deceiving unsuspecting investors with promises of high returns through cryptocurrency mining, including Bitcoins.
According to the police, the accused used a mobile phone application named “HPZ Token” to deceive investors. ED revealed that multiple “shell entities” with fictitious directors established bank accounts and merchant IDs. These were used to facilitate the “layering” of the proceeds of criminal activities.
The ED alleged that the funds were unlawfully obtained through activities such as illegal online gaming, betting, and investment in Bitcoin mining. Investors were promised returns of Rs 4,000 per day for three months with an initial investment of Rs 57,000.
However, according to the ED, the promised returns were only paid once, and subsequently, the accused solicited additional funds from the investors.
The ED conducted nationwide searches in connection with the case, resulting in the confiscation of immovable assets and deposits valued at Rs 455 crore.
Image source: Economic Times
