Chinese Loan App Case: ED Freezes Rs 46.67 Crore Worth Funds Of Payment Gateway Apps

 

The Enforcement Directorate has carried out raids against Chinese “controlled” loan apps and investment tokens. The ED froze Rs. 46.67 cr. worth funds kept at the Bengaluru premise of payment gateways accounts of Easybuzz, Razorpay, Cashfree, and Paytm in connection with the HPZ token case over alleged irregularities in the operation of instant app-based loan-giving companies that are controlled by Chinese personals. The funds have been frozen and seized under the Prevention of Money Laundering Act (PMLA).
The investigation was carried out on September 14th at various business and residential premises in Delhi, Ghaziabad, Mumbai, Lucknow, and Gaya over the money laundering case probed against an app-based token named HPZ and related entities. The case is based on an FIR filed in October 2021, registered by the Kohima police’s cybercrime unit in Nagaland.
According to the ED, the HPZ token was an app-based token that lured victims to invest in the company, promising a doubling of their investments and large gains to the customers against investments by investing in mining machines in bitcoins and other cryptocurrencies.
“Payments were received from users through UPIs and other payment gateways/ nodal gateways/ individuals. Part amount was paid back to the investors and remaining amount was diverted to various individuals and company accounts through variou

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