Ticker: Money laundering
HT Correspondent
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DIMAPUR, March 6: In a case relating to duping of investors in the name of mining Bitcoins and other Cryptocurrencies, the directorate of enforcement (ED) has filed a prosecution complaint before the Special Court (PMLA), Dimapur, against 299 accused persons and entities, including 76 Chinese controlled entities and two other entities controlled by other foreign nationals. Ten directors of the 76 Chinese-controlled entities are said to be of Chinese origin.
According to an ED release on Wednesday, the Special Court, Dimapur, has taken cognizance of the offense of money laundering in the said prosecution complaint on March 5, 2024, after finding that a prima facie case has been made out under PMLA, 2002, against the 299 accused.
The release said the ED initiated investigation based on an FIR registered by the cyber crime police station, Kohima, under various sections of the Indian Penal Code, 1860, and Information Technology Act, concerning duping of gullible investors, who were promised astronomical returns on investing money, claimed to be used for the mining of Bitcoins and other Cryptocurrencies, for which an App based Token by the name of “HPZ Token” was used.
The ED investigation revealed that various bank accounts and merchant IDs were opened by various shell entities having dummy directors/proprietors only for rotation/layering of proceeds of crime representing funds fraudulently received for illegal online gaming and betting and investment for Bitcoin mining.
It said for an investment of Rs 57,000, returns of Rs 4,000 per day for three months were promised but money was paid only once, and thereafter fresh funds were sought.
Earlier, the ED had conducted search operations at 44 locations throughout the country. An amount of Rs 176.67 crore, maintained by shell entities in various banks/virtual accounts, was frozen. Further, movable and immovable properties to the extent of Rs 278.70 crore held in the name of dummy entities were attached.
The ED said the total seizure and attachment stood at Rs 455.37 crore, adding further investigation is in progress.
