Fraud Alert
Rs 2,200-Crore Crypto Scam: Court Declared Mastermind Fugitive
Nagaland: Dimapur court has declared Bhupesh Arora, the mastermind behind the Rs 2,200 crore cryptocurrency scam known as the HPZ Token racket, a fugitive under the Fugitive Economic Offenders Act (FEOA). This declaration empowers the government to confiscate all of Arora’s assets.
The court of Justice N Longshithung Ezung passed the order on Wednesday, granting the Enforcement Directorate’s (ED) application to designate Arora as a ‘fugitive economic offender’ and approve the seizure of his properties. Arora is believed to have fled to Dubai.
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The HPZ Token scam involved an alleged investment fraud orchestrated by Delhi-based Bhupesh Arora. Investors were lured with promises of massive returns on cryptocurrency transactions. The scheme primarily targeted victims in Nagaland and Assam. Acting on a First Information Report (FIR) registered by the Nagaland Police, the ED launched its investigation in 2022. Subsequently, the Assam Police and the Central Bureau of Investigation (CBI) also filed FIRs against the racket.
According to the ED, the scam funneled money through over 140 shell companies and 200 bank accounts spread across 20 states. Most shell companies were registered in Delhi (52), followed by Karnataka (26) and Haryana (19). Similarly, the highest number of bank accounts were located in Delhi (84), followed by Karnataka (37) and Maharashtra (26).
The scam also relied on eight payment gateways, including Razorpay, Easebuzz, PayU, Paytm, and CashFree, to funnel nearly Rs 200 crore.
The HPZ Token racket underscores the growing threat of cryptocurrency-related scams in India, with unsuspecting investors falling prey to promises of high returns. Investigative agencies continue to work on tracing the money trail and bringing the perpetrators to justice.
