India's financial crime fighting organization, <a href="https://www.cryptoknowmics.com/news/the-enforcement-directorate-ed-has-unfrozen-wazirx-accounts/" target="_blank" rel="noopener">Enforcement Directorate</a> (ED), has blocked US$1.2 million in account balances of several Chinese-controlled businesses as part of an inquiry into a suspected crypto scam employing the application-based token "HPZ" and similar apps.
<h2>List of Companies Accused by ED</h2>
In a <a href="https://enforcementdirectorate.gov.in/sites/default/files/latestnews/Press%20Release%20HPZ%2028.09.2022.pdf" target="_blank" rel="nofollow noopener">news statement</a>, India's Enforcement Directorate named these businesses as Comein Network Technology Private Limited, Magic Data Technology Private Limited, Mobicred Technology Private Limited, Wecash Technology Private Limited, Larting Private Limited, Baitu Technology Private Limited, Magic Bird Technology Private Limited, Acepearl Services Private Limited, and Aliyeye Network Technology India Pvt. Ltd.
<h2>HPZ Token - App-Based Token</h2>
According to the ED, the HPZ Token was an "App-Based Token" that assured users of significant returns on their investment by equating them to investing in Bitcoin and other cryptocurrency mining equipment. Through the application, HPZ Token, and other similar applications, the scammers would initially attract victims into investing in their businesses under the prospect of doubling or quadrupling their initial investment.
<h2>Investigation Results of ED</h2>
The investigation results of ED showed that these businesses had contracts with various non-banking financial institutions and had received funds from the wider populace to run other suspect applications, including Cashhome, Cashmart, and easyloan.

ED reported that searches executed on September 14 resulted in the freezing of $5.7 million in the bank and virtual account balances. In this case, a total of US$6.9 million has been frozen. ED has been actively taking action against crypto exchanges in India and against people who are allegedly creating applications to defraud the public.
<h2>ED Unfroze WazirX Accounts</h2>
Earlier this month, ED investigators examined sixteen fintech companies and quick loan applications. A couple of them have used the <a href="https://www.cryptoknowmics.com/news/wazirx-to-delist-usdc-usdp-and-tusd-on-26-september/" target="_blank" rel="noopener">WazirX</a> platform. The Indian cryptocurrency exchange has provided investigators with all the necessary information, data, and supporting materials on the suspected accused companies that were believed to have used its platform.

India's ED Accused Chinese-Controlled Unit For Crypto Scam

India's ED blocked US$1.2M in account balances of several Chinese-controlled businesses in an inquiry into a suspected crypto scam.

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India's ED Accused Chinese-Controlled Unit For Crypto Scam

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