The Directorate of Enforcement (ED) has filed a Supplementary Prosecution Complaint (SPC) in the high-profile HPZ Token investment scam case, involving alleged proceeds of crime of approximately ₹2,200 crore.
The SPC was filed on January 12, 2026, before the Special Court under the Prevention of Money Laundering Act (PMLA), Dimapur, which has taken cognizance of the complaint.
Background of the HPZ Token Case
The ED initiated its investigation based on an FIR registered by the Cyber Crime Police Station, Kohima, Nagaland, in October 2021. Subsequently, multiple FIRs linked to the same offence were identified and merged into the investigation, including cases registered by:
- CID Police Station, Ulubari, Guwahati
- CBI, EO-III, Delhi
These FIRs relate to offences under various provisions of the Indian Penal Code, 1860, connected to the HPZ Token operation.
Modus Operandi of the HPZ Token Investment Scam
According to the ED, the HPZ Token scam was a large-scale fraudulent investment scheme that targeted investors across several parts of the country. Key findings of the PMLA investigation include:
- Investors were lured through the HPZ Token App with promises of high returns
- Funds were collected using numerous UPI IDs linked to mule bank accounts
- A complex web of shell companies, dummy directors, and payment aggregators was used to launder money
- A small portion of funds was returned to investors to gain trust and encourage further investments.
Role of Mule Accounts and Shell Companies
The investigation revealed that the proceeds of crime were initially collected in mule accounts maintained with ICICI Bank. These funds were then routed through multiple shell entities that misused the services of payment aggregators such as:
- PayU
- Aggrepay
- Easebuzz
The money was subsequently transferred to accounts of M/s Shigoo Technology Private Limited (STPL) and M/s Lillian Technocab Private Limited (LTPL).
Alleged Role of Bhupesh Arora
The ED has alleged that Bhupesh Arora, along with his associates, controlled and managed several shell and dubious entities, including:
- Digi India Marketing
- Analytiq Business Ventures Pvt. Ltd.
- Freebie Solutions Pvt. Ltd.
- Truvinta Solutions Pvt. Ltd.
- Zavion Trading Pvt. Ltd.
- Sark Enroll System Pvt. Ltd.
These entities were allegedly used to launder the proceeds of crime through shell companies, mule accounts, hawala operators, and foreign currency exchangers.
Bhupesh Arora is currently under arrest in another ED case of similar nature, involving a separate fraudulent investment application.
Attachment of Proceeds of Crime
The ED has identified proceeds of crime worth approximately ₹2,200 crore in the HPZ Token case. Due to timely enforcement action:
- Around ₹650 crore lying in mule bank accounts has been attached
- Some funds were allegedly transferred abroad through hawala channels
- The remaining investigation into fund trails is ongoing.
Current Status of the Case
- The main prosecution complaint was filed on March 4, 2024
- The case is currently under trial
- The newly filed Supplementary Prosecution Complaint adds further evidence and financial trails
- Further investigation is in progress.
Why the HPZ Token Case Is Significant
The HPZ Token scam highlights:
- The growing risk of app-based investment frauds
- Misuse of payment aggregators and digital banking channels
- The importance of investor awareness and regulatory enforcement
ED’s expanding role in tackling digital financial crimes and money laundering
Source: ED Press Release dated 19/01/2026