India's Central Bureau of Investigation (CBI) uncovers international crypto fraud scheme involving the HPZ token
Date: 2025-10-10 Author: Henry Casey Categories: IN WORLD
India's Central Bureau of Investigation (CBI) announced the uncovering of a major international scam involving the HPZ cryptocurrency token. The operation, codenamed "Chakra-V," led to the arrest of five individuals and the seizure of digital evidence in Delhi, Hyderabad, and Bangalore. Investigators say the participants in the scheme used a network of shell companies to launder money and siphon funds out of the country.
Subsequent searches were conducted on October 3 in several Indian cities. Bank records, electronic media, and other evidence confirming the scale of the operation were found during the raids. The CBI alleges that foreign nationals, acting in concert with Indian accomplices, were behind the fraud.
According to investigators, the criminal network operated from 2021 to 2023. Fraudsters posed as investors, employers, and lenders, promising quick profits or favorable employment terms. Victims were persuaded to transfer money to "investment projects," which were in fact merely fronts for financial fraud.
The collected funds were deposited into the accounts of fictitious companies, after which they were transferred to so-called "mule" bank accounts. The funds were then converted into HPZ tokens and transferred out of India using complex cryptocurrency conversion and laundering schemes. As a result, the criminals withdrew hundreds of crores of rupees.
The agency noted that the investigation is being conducted under articles related to fraud, identity fraud, and violation of information technology laws. The CBI is actively collaborating with international partners and other Indian agencies to track financial flows and identify all participants in the network. Particular attention is being paid to establishing links between Indian and foreign organizers.
In a press release, the bureau emphasized that the investigation is ongoing, and the digital evidence collected will allow them to uncover the entire structure of the scam. Using modern transaction analysis technologies, investigators hope to identify the coordinators who ran the scheme from abroad.
A similar investigation in South Korea previously uncovered an international hacker group that stole $28.1 million from the cryptocurrency and bank accounts of 16 victims. Experts believe these cases demonstrate the rise in cryptocurrency-related cybercrime and the need for stricter regulation of digital assets internationally.
