ED searches 9 Chinese controlled cos, freezes account balances worth ₹9.82 cr

According to the press note issued by ED, the action has been taken against the entities like Comein Network Technology Private Limited, Mobicred Technology Private Limited, Magic Data Technology Private Limited, Baitu Technology Private Limited, Aliyeye Network Technology India Pvt Ltd, Wecash Technology Private Limited, Larting Private Limited, Magic Bird Technology Private Limited and Acepearl Services Private Limited.

The Enforcement Directorate (ED) initiated money laundering investigation on the basis of FIR dated 8 October 2021 filed under various sections of Indian Penal Code, 1860 by Cyber Crime Police Station, Kohima, Nagaland, against HPZ token & others.

The HPZ token promises users of large gains against investment by declaring the same as “investing in mining machines for Bitcoin and other cryptocurrencies, the ED said in a statement.

The modus-operandi of the entities were to first lure the victims to invest in their companies on the pretext of doubling / multiplying their investment through the “app HPZ Token” and other similar applications, it added.

ED investigation has revealed that various Chinese controlled entities — Comein Network Technology Private Limited and others– in service agreements with various NBFCs were also operating multiple suspicious loan/others apps (such as Cashhome, Cashmart, easyloan etc.) and indulged in receiving funds from public on pretext of operating these apps.

ED had earlier frozen bank/virtual account balances amounting to Rs. 46.67 crore during the searches conducted on 14 September, 2022. With the present freezing, total freezing in this case stands at Rs. 56.49 crore. Further investigation is under progress.