ED files charges against Chinese-origin directors and others in crypto-mining app case

A chargesheet under the Anti-Money Laundering Act has been filed against 299 entities, including 10 individuals of Chinese origin, in an investigation into alleged cheating of investors in the name of mining. Cryptocurrency As Bitcoins, the Enforcement Directorate said on Wednesday.

A special court in Nagaland’s Dimapur on Tuesday took cognizance of the prosecution’s complaint filed under the Prevention of Money Laundering Act (PMLA), the federal agency said in a statement.

A total of 299 entities, including 76 Chinese-controlled entities, with 10 directors of Chinese origin and two others controlled by foreign nationals, have been named as accused, it said.

The Enforcement Directorate (ED) money laundering case has emerged from an FIR by the Cyber ​​Crimes Unit of the Kohima Police.

The Kohima police had booked various people under the Indian Penal Code and the Information Technology Act for allegedly duping the wrong investors by promising them astronomical profits through mining bitcoins and other cryptocurrencies.

Police had said that an app (mobile phone application) called “HPZ Token” was used by the accused to “cheat” investors.

The bank accounts and merchant IDs were opened by various “shell entities” with “dummy” directors whose aim was to “layer” the proceeds of crime, the ED said.

These funds were “fraudulently” obtained for illegal online gaming, betting and investing. Bitcoin Mining, he claimed.

57,000 for an investment of Rs.4,000 per day for three months, the ED said, but the amount was paid only once, and thereafter, the accused asked the investors for new Funds were sought.

In this case, nationwide raids were conducted by the ED which led to the seizure of immovable assets and deposits of Rs. 455 crore, it said.

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