CBI conducts searches in HPZ token fraud case, arrests five accused

The Central Bureau of Investigation (CBI) has carried out searches in the HPZ cryptocurrency token fraud case and arrested five accused persons.

On Friday (October 3, 2025), the searches were conducted at seven locations in and around Delhi, Hyderabad, and Bengaluru. The case, registered under criminal conspiracy, impersonation, and fraud and offences under the Information Technology Act, alleges the involvement of foreign-based masterminds in collusion with Indian nationals.

“Between 2021 and 2023, organised cyber frauds were committed across India in the guise of loan, job, investment, and cryptocurrency schemes. 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,” said the agency.

“The investigation has revealed that several shell entities were incorporated in India at the instance of foreign perpetrators. These companies were onboarded on various FinTech and payment aggregator platforms to collect and channel the public funds.The funds collected were consolidated, converted into cryptocurrencies, and transferred to various crypto wallets, eventually being remitted across borders to conceal the proceeds of crime,” it said.

While five accused persons have been held, further probe is going on to trace the cross-border financial trails, identify other individuals and entities involved, and unravel the full extent of the conspiracy.