The Dimapur court has proclaimed Bhupesh Arora, the mastermind behind the Rs 2,200 crore HPZ Token crypto scam, a fugitive economic offender. The decision enables the government to attach the assets of Arora, who is said to be residing in Dubai.
The Enforcement Directorate’s (ED) request was sanctioned by Justice N Longshithung Ezung to pronounce Arora a fugitive and attach his properties. The scam initially targeted investors in Assam and Nagaland with guarantees of huge returns from cryptocurrency transactions.
The probe unearthed a sophisticated network of fraud:
- More than 140 shell firms spread over 20 states
- 200 bank accounts, predominantly found in Delhi, Karnataka, and Haryana
- Eight payment gateways that were used to cheat to the tune of approximately Rs 200 crore
- Razorpay, PayU, and Paytm platforms were used
The modus operandi of the scam was simple: entice investors with the assurance of doubling their money using the HPZ Token app. Nagaland police initially registered an FIR in 2022, and the ED followed up on it. Later, Assam police and CBI also registered cases.
The court ruling is a major milestone in curbing cryptocurrency fraud and safeguarding investors against such sophisticated scams.
