ED raids 9 Chinese cos, freezes bank accounts having ₹9.82 cr in total

The Enforcement Directorate (ED) has carried out search operations at the premises of nine Chinese-controlled entities in connection with the misuse of app-based token ‘HPZ’ and other similar applications. The agency has also frozen bank accounts having a total of ₹9.82 crore.  

According to a statement issued by the ED, the action has been taken under the money laundering probe against the entities like Comein Network Technology Private Limited, Mobicred Technology Private Limited, Magic Data Technology Private Limited, Baitu Technology Private Limited, Aliyeye Network Technology India Pvt Ltd, Wecash Technology Private Limited, Larting Private Limited, Magic Bird Technology Private Limited and Acepearl Services Private Limited. 

The probe agency had initiated a money laundering investigation on the basis of FIR dated 8 October, 2021 filed under various sections of Indian Penal Code, 1860 by Cyber Crime Police Station, Kohima, Nagaland, against HPZ token & others. 

The HPZ token promises users of large gains against investment by declaring the same as “investing in mining machines for Bitcoin and other cryptocurrencies”, the ED said in a statement. 

The modus-operandi of the entities were to first lure people to invest in their companies on the pretext of doubling/multiplying their investment through the “app HPZ Token” and other similar applications, it added. 

ED investigation has revealed that various Chinese controlled entities — Comein Network Technology Private Limited and others — in service agreements with various NBFCs were also operating multiple suspicious loan/others apps (such as Cashhome, Cashmart, easyloan etc.) and indulged in receiving funds from public on pretext of operating these apps. 

ED had earlier frozen bank/virtual account balances amounting to ₹46.67 crore during the searches conducted on 14 September, 2022. With the current freezing, the amount in this case has reached to ₹56.49 crore.