CBI Charges 30 in Multi-Crore HPZ Token Cyber Investment Fraud
India's Central Bureau of Investigation has filed charges against 30 individuals, including two Chinese nationals, in connection with a sophisticated cryptocurrency investment fraud that allegedly laundered over ₹1,000 crore through a network of shell companies. The HPZ Token scam, which flourished during the COVID-19 lockdown, represents what investigators describe as an increasingly organized wave of cross-border cybercrime targeting Indian investors during the post-pandemic period.
Background and Context
According to the CBI, the accused operated a fraudulent mobile application called HPZ Token, which promised cryptocurrency mining-based investments with guaranteed and unusually high returns. Thousands of investors were allegedly lured into the scheme during pandemic lockdowns, when many people were seeking online income opportunities. Rather than investing in legitimate cryptocurrency activities, the fraudsters allegedly siphoned off large sums within a short period, exploiting the increased vulnerability of investors during the economic uncertainty of the pandemic.
Key Figures and Entities
Among those named in the chargesheet are Chinese nationals Wan Jun and Li Anming, identified by investigators as the alleged masterminds behind the operation. Wan Jun, who served as director of Jilian Consultants India Private Limited, is accused of structuring the financial and corporate backbone of the scam. With assistance from Indian associates, including an individual identified only as Dortse, Wan Jun allegedly established multiple shell companies such as Shigoo Technology Pvt. Ltd., which were used to collect, layer, and launder the criminal proceeds. The CBI found that professionals including company secretaries and chartered accountants were allegedly engaged to incorporate these shell companies and manage regulatory paperwork.
Legal and Financial Mechanisms
The investigation revealed that more than ₹1,000 crore was moved through shell-company bank accounts through multiple layers designed to conceal both the source and ultimate beneficiaries of the funds. According to the chargesheet, the syndicate exploited vulnerabilities in India's banking and fintech ecosystem, particularly payment aggregator systems that allowed for high-volume collections and rapid fund transfers. These payment aggregators, meant for legitimate digital businesses, were allegedly misused to quickly move money between accounts while creating an illusion of legitimacy. The fraudsters reportedly returned small amounts to some investors to build false confidence and attract more victims. After collection, the funds were allegedly converted into cryptocurrency and transferred out of India, further complicating efforts to trace the money trail.
International Implications and Policy Response
The CBI believes the HPZ Token operation was not standalone but part of a foreign-controlled cyber syndicate running multiple scams in parallel, including fake loan apps, bogus online job portals, and other fraudulent investment platforms. This case forms part of Operation Chakra-V, the agency's broader initiative aimed at dismantling organized cybercrime networks operating across borders. The scale and sophistication of the operation highlight significant challenges in regulating emerging financial technologies and preventing their exploitation by transnational criminal networks. The agency has emphasized its commitment to safeguarding investors, seizing illicit proceeds, and strengthening international cooperation to counter emerging cyber frauds.
Sources
This report draws on information from the Central Bureau of Investigation's chargesheet filing, official statements regarding Operation Chakra-V, and public documents related to the corporate entities mentioned in the investigation. The case remains under active investigation as authorities work to trace additional collaborators and overseas financial channels connected to the HPZ Token scam.
