The Central Bureau of Investigation (CBI) has unearthed a sophisticated cryptocurrency fraud scheme involving the HPZ Crypto Currency Token, as part of its ongoing Operation Chakra-V. The nationwide crackdown, executed on October 3, 2025, exposed a massive transnational network engaged in cyber-enabled financial crimes worth hundreds of crores of rupees.
According to the agency’s press statement, search operations were conducted across seven locations — including Delhi NCR, Hyderabad, and Bengaluru — resulting in the recovery of crucial digital evidence, shell company records, and financial documents.
Fraudsters Exploited Shell Firms and Crypto Channels
The CBI revealed that the scam was orchestrated between 2021 and 2023, with fraudsters running elaborate operations under the guise of loan, job, investment, and cryptocurrency schemes. These scams were carried out through fake FinTech and payment aggregator platforms that collected funds from unsuspecting investors.
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To execute the fraud, the perpetrators allegedly created multiple shell companies in India at the direction of foreign masterminds, who used these entities to open mule bank accounts. Funds were funneled through these accounts, converted into cryptocurrencies, and transferred abroad through layered financial transactions to obscure the money trail.
Five Arrested; Financial Trails Under Investigation
The CBI has so far arrested five accused individuals actively involved in managing and executing the fraud. They have been produced before the competent court in accordance with due legal procedures.
Investigators are now focused on tracing the cross-border financial flows, identifying other individuals or entities involved, and unraveling the full extent of the conspiracy. Officials emphasized that several of the Indian-registered shell entities were set up to aid foreign perpetrators in channeling illicit funds through crypto exchanges and wallets.
Operation Chakra-V: India’s Fight Against Cybercrime
The HPZ case marks another major success under Operation Chakra-V, CBI’s coordinated initiative to combat cyber-enabled financial crimes through inter-agency cooperation and intelligence-led operations.
The agency highlighted the use of advanced digital forensics and international coordination to tackle transnational threats. “CBI remains committed to combating cyber-enabled financial crimes through sustained intelligence-led operations and advanced forensics to counter complex fraud networks,” the statement said.
A Growing Threat
The HPZ crypto token case underscores the increasing sophistication of cybercriminals leveraging digital finance systems for fraud and laundering. As India accelerates digital adoption, enforcement agencies are stepping up efforts to build cyber resilience and dismantle international fraud syndicates operating through crypto ecosystems.
