In a major breakthrough against digital crime, the Central Bureau of Investigation (CBI) has conducted extensive raids and apprehended five individuals implicated in the notorious HPZ cryptocurrency token fraud case.
These coordinated searches took place on Friday, October 3, 2025, spanning seven key locations within and around Delhi, Hyderabad, and Bengaluru. The case, which involves serious charges of criminal conspiracy, impersonation, and fraud under the Information Technology Act, points to a sophisticated operation masterminded by foreign entities working in concert with Indian accomplices.
The agency’s investigation unearthed a widespread cyber fraud scheme that operated between 2021 and 2023. Perpetrators lured victims with enticing promises of loans, jobs, investments, and cryptocurrency gains. To facilitate these illicit activities, a network of shell companies was meticulously established, which were then used to set up numerous ‘mule’ bank accounts. Funds collected from unsuspecting victims were funnelled through these accounts, swiftly converted into cryptocurrencies, and then transferred out of India via intricate financial layering and crypto conversion channels.
Further revelations from the probe indicate that several shell entities were specifically incorporated in India at the behest of these foreign operators. These companies were strategically integrated onto various FinTech and payment aggregator platforms, enabling them to illicitly collect and channel public funds. These consolidated funds were subsequently transformed into digital currencies and dispersed into various crypto wallets, ultimately being remitted across international borders to effectively conceal the origins of the ill-gotten gains.
With five key accused now in custody, the investigation is actively continuing to unravel the intricate cross-border financial trails, identify additional individuals and organizations involved, and fully expose the true scope of this elaborate conspiracy.