Dimapur: The Directorate of Enforcement (ED) has taken decisive action in a significant money laundering case, filing a Prosecution Complaint against 299 accused persons and entities, including 76 Chinese-controlled entities and two other entities controlled by foreign nationals.
Through a release, the ED informed that the Special Court (PMLA), Dimapur, Nagaland, has acknowledged the severity of the offense and taken cognizance of the Prosecution Complaint on March 5, affirming a prima facie case under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation, initiated by the ED based on an FIR registered by the Cyber Crime Police Station in Kohima, Nagaland, uncovered a sophisticated scheme targeting unsuspecting investors.
Promises of extraordinary returns on investments in a purported Bitcoin and cryptocurrency mining venture, facilitated through an app-based token named “HPZ Token,” lured gullible individuals into the scam.
ED’s meticulous investigation unraveled a web of shell entities with dummy directors and proprietors, orchestrating the rotation and layering of proceeds of crime. Funds fraudulently acquired through illegal online gaming, betting, and deceptive investment schemes were channeled through various bank accounts and merchant IDs.
Victims, enticed by promises of substantial returns, were duped into investing significant sums, only to receive minimal returns or none at all. The scheme preyed upon the vulnerability of investors, soliciting fresh funds after the initial payments.
Earlier raids conducted by the ED across 44 locations nationwide resulted in the freezing of Rs. 176.67 Crore maintained by shell entities in various banks and virtual accounts.
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Furthermore, movable and immovable properties worth Rs. 278.70 Crore, held under the names of dummy entities, were attached. The total seizure and attachment in this case amount to a staggering Rs. 455.37 Crore.
Further investigation is underway to unearth the full extent of the illicit activities perpetrated by the accused.
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