The Central Bureau of Investigation (CBI) in India has launched a nationwide search operation as part of an ongoing investigation into an app-based crypto fraudulent investment scheme called HPZ Token App. The operation targeted two private companies and their directors who are accused of misleading the public and enticing them to invest in a non-existent cryptocurrency mining machine rental scheme. During the raids, incriminating documents and digital evidence such as mobile phones, hard drives, SIM cards, debit cards, and email accounts were seized. The fraudsters behind the HPZ Token App promised high returns on investments through mining machines for popular cryptocurrencies like Bitcoin and guaranteed astronomical profits. The investigation has identified around 150 bank accounts allegedly used by the accused to collect funds from investors.
The investigation into the fraudulent investment scheme linked to the HPZ Token App comes as the Directorate of Enforcement (ED) in India has seized a major crypto money laundering case connected to a gaming app. The ED has frozen crypto assets worth ₹90 crore in connection to the scam, which were kept in 70 accounts linked to major crypto wallets such as Binance, ZebPay, and WazirX. The app, known as E-Nugget, posed as a gaming platform and promised multi-fold returns on investments, leading to the seizure of the frozen cryptos and subsequent transfer into the crypto wallet of the ED. The crackdown on app-based crypto investment fraud by the CBI and the ED highlights the ongoing issues of fraudulent schemes in the Indian crypto space.
A recent survey conducted by Mudrex has revealed that nearly half of individuals in India with retirement plans have ventured into the realm of cryptocurrency investments. The survey focused on crypto investments and found that 45% of users with retirement plans have allocated funds to cryptocurrencies, indicating a growing interest in digital assets as an alternative investment option. The survey also reflects the evolving perception of cryptocurrencies as a mainstream asset class, with 50% of respondents believing that cryptocurrencies will become the primary asset class within the next five years. This increase in confidence and acceptance of cryptocurrencies within the Indian market has been further fueled by the recent surge in the price of Bitcoin.
The surge in the price of Bitcoin has injected fresh life into Indian cryptocurrency exchanges, as trading volumes on the top platforms reached a ten-month high in February. Leading Indian exchanges such as CoinDCX, WazirX, and BitBNS recorded significant trading volumes last month, indicating a renewed interest and activity in the crypto market among Indian traders and investors. The rise in trading volumes and the increased acceptance of cryptocurrencies as an asset class highlight the growing importance of digital assets in the Indian financial landscape. The ongoing crackdown on fraudulent crypto schemes by regulatory authorities like the CBI and the ED underscores the need for investor protection and regulation in the evolving crypto space.
