The logo of Enforcement Directorate (ED).
Credit: PTI Photo
Guwahati: The Enforcement Directorate (ED) has filed a prosecution complaint in a special court in Nagaland against 299 accused including 76 "Chinese-controlled entities" for allegedly duping investors through an app-based token system.
The ED on Wednesday said the investigation so far has revealed that gullible investors were duped with the promise of astronomical returns on investing money, claimed to be used for the purpose of mining of Bitcoins and other cryptocurrencies, for which an app-based token by the name of “HPZ Token” was used.
"The investigation revealed that various bank accounts and merchant IDs were opened by various shell entities having dummy directors/proprietors only for the purpose of rotation/layering of proceeds of crime representing funds fraudulently received for illegal online gaming and betting and investment for Bitcoin mining. 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," ED said in a statement.
ED started an investigation following an FIR registered by cybercrime police station, Kohima in Nagaland under various sections of Indian Penal Code (IPC), 1860 and Information Technology Act, in relation to duping of gullible investors.
The ED said that 10 directors of the Chinese controlled entities are of Chinese origin while two others hail from other countries.
Earlier, ED conducted searches at 44 locations throughout the country and an amount of Rs176.67 crore, maintained by shell entities in various banks/virtual accounts were frozen.
Further movable and immovable properties to the extent of Rs 278.70 crore held in the name of dummy entities were also attached. Total seizure and attachment stand at Rs 455.37 Crore, according to the ED statement.
The special court, Dimapur took cognizance of the offence of money laundering in the said prosecution complaint on Tuesday (March 5) after finding that a prima-facie case has been made out under the Prevention of Money Laundering Act (PMLA) against the said 299 accused people, the ED statement said.