ED Files Prosecution Complaint against 299 Accused Including 76 Chinese Controlled Entities

The Enforcement Directorate has filed Prosecution Complaint before a Special Court in Dimapur against 299 accused persons and entities in connection with an alleged money laundering case.

New Delhi: The Enforcement Directorate (ED) has filed a Prosecution Complaint before the Special Court (PMLA) in Nagaland's Dimapur against 299 accused persons and entities including 76 Chinese-controlled entities, in which 10 Directors are allegedly of Chinese origin and 2 other entities controlled by other foreign nationals.

The Special Court, Dimapur, has taken cognisance of the offence of alleged money laundering in the Prosecution Complaint after finding that a prima-facie case has been made out under PMLA, 2002 against 299 accused persons, ED claimed in a communique on Wednesday.

ED initiated the probe on the basis of an FIR registered by Cyber Crime Police Station, Kohima in Nagaland under various sections of IPC, 1860 and Information Technology Act, in relation with duping of gullible investors, who were reportedly promised astronomical returns on investing money (claimed to be used for the purpose of mining of Bitcoins and other Crypto Currencies) for which an app-based-token by the name of 'HPZ Token' was used, ED claimed.

The investigation revealed that various bank accounts and merchant IDs were opened by various shell entities having alleged dummy directors and proprietors only for the purpose of rotation and layering of proceeds of crime representing funds fraudulently received for illegal online gaming and betting and investment for Bitcoin mining, the probe agency claimed.

For an investment of Rs 57,000 returns of Rs 4,000 per day for three months were promised but money was paid only once and thereafter fresh funds were sought, it said.

Earlier, ED conducted searches at 44 locations across the country and an amount of Rs 176.67 crore, maintained by shell entities in various banks and virtual accounts were frozen.

Further movable and immovable properties to the extent of Rs 278.70 crore held in the name of dummy entities were attached. Total seizure and attachment stand at Rs 455.37 crore. Further investigation is under progress, ED added.