Kohima: The Dimapur Sub-Zonal Office of the Enforcement Directorate (ED) has taken major action in the high-profile HPZ Token investment scam, filing a Supplementary Prosecution Complaint (SPC) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 before the Special PMLA Court in Dimapur on January 12, 2026. The court has taken cognisance of the complaint.
The ED began its investigation based on FIR No. 032021 dated October 8, 2021, registered by the Cyber Crime Police Station, Kohima (Nagaland). Additional FIRs connected to the same offence — including CID PS Ulubari, Guwahati FIR No. 00062021 dated September 2, 2021, and CBI Delhi FIR No. RC221202260022 dated June 8, 2022 — have also been incorporated into the probe.
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Thousands of investors duped across the country
According to the ED, the HPZ Token app was used to lure investors nationwide with promises of high returns, resulting in large-scale financial fraud. The scam is believed to have targeted innocent investors and siphoned off their savings through a well-structured digital investment scheme.
The investigation has revealed that the accused used dummy directors, shell companies and mule bank accounts to disguise and launder the proceeds of crime.
UPI channels and mule accounts used to route funds
Financial analysis by the ED found that investors’ funds were collected through multiple UPI IDs linked to mule accounts held with ICICI Bank. The money was subsequently layered and transferred through several shell entities to obscure its origin.
Further investigation showed that these shell firms misused payment aggregator platforms to move funds before finally depositing them into the bank accounts of Shine Technology Pvt. Ltd. (STPL) and Lillian Technocab Pvt. Ltd. (LTPL).
Key accused and network under ED scanner
In its supplementary complaint, the ED has identified Bhupesh Arora as the key accused, alleging that he and his associates controlled and operated a network of shell companies including Digi India Marketing, Analytic Business Ventures Pvt. Ltd., Freebee Solutions Pvt. Ltd., Durvinta Solutions Pvt. Ltd., Zevian Trading Pvt. Ltd., and Sark Enrol System Pvt. Ltd.
The ED stated that Arora is currently in custody in another related financial fraud case involving a similar fake investment application.
₹200 Crore in Proceeds of Crime traced, ₹950 Crore attached
The ED informed that the main prosecution complaint was already filed before the Special Court on March 4, 2024, and the matter is under trial. So far, the agency has traced approximately ₹200 crore as Proceeds of Crime (PoC) linked to the scam.
However, during the investigation, the ED has managed to attach ₹950 crore lying in various mule accounts, safeguarding a substantial portion of the defrauded funds.
Hawala and foreign remittance links being examined
The ED further stated that part of the laundered money was transferred outside the country using hawala channels, and the investigation into foreign remittances and end-use of funds is still underway.
The agency has indicated that more attachments and disclosures are expected as the probe progresses.
The HPZ Token case is considered one of the largest digital investment frauds uncovered in recent years, highlighting serious concerns over unregulated crypto-based investment platforms.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
