India’s RBI uncovers crypto scam involving HPZ token

Key points:

• The RBI of India has exposed an international crypto fraud scheme involving the HPZ token as part of Operation Chakra-V.
• As a result of searches in Delhi, Hyderabad, and Bangalore, five people have been arrested, and digital evidence has been seized.
• The investigation is ongoing, with investigators tracking cross-border financial links and accomplices in the network.

During Operation Chakra-V, India’s Central Bureau of Investigation (CBI) uncovered a large-scale crypto fraud scheme involving the HPZ token. According to the agency, the perpetrators withdrew hundreds of crores of rupees through fictitious companies. As a result of the searches, five people were arrested, according to the agency’s press release.

Source: x.com

On October 3, coordinated search operations were conducted in the National Capital Region of Delhi, Hyderabad, and Bangalore. Law enforcement officers discovered and seized digital evidence, bank documents, and other evidence.

The essence of the fraudulent scheme

The investigation is being conducted under articles “criminal conspiracy, impersonation, and fraud,” as well as “crimes under the Information Technology Act.” Investigators believe that the scam was organized by foreign nationals in collaboration with Indian citizens.

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The agency said that between 2021 and 2023, criminals across India carried out organized cyber fraud under the guise of credit, employment, investment, and cryptocurrency schemes. The CBR noted:

“These frauds were facilitated through the creation of multiple shell companies, which were used to open mule bank accounts. The proceeds collected from victims were routed through these accounts, converted into cryptocurrencies, and subsequently transferred outside India through complex financial layering and crypto conversion routes.”

Further investigations are underway to trace cross-border financial links, identify other participants in the criminal activity, and uncover the full extent of the fraud. The CBR conducts intelligence investigations, cooperates with other agencies, and uses advanced digital tools to uncover complex international fraud networks.

In August, Seoul police uncovered the activities of an international hacker group that attacked South Korea’s business elite. The criminals stole $28,1 million (39 billion Korean won) from the cryptocurrency and bank accounts of 16 victims.