India’s Central Bureau of Investigation filed a chargesheet against 30 accused including two Chinese nationals who allegedly ran a cyber fraud network that siphoned over ₹1,000 crore (approximately US$112 million) from Indian investors through fake cryptocurrency mining platforms, loan apps, and bogus online job offers during the COVID-19 lockdown period.
The HPZ Token Investment Fraud case has exposed a well-coordinated transnational criminal syndicate that exploited India’s emerging payment aggregation systems to launder proceeds at unprecedented speed through multiple shell companies before converting funds to cryptocurrency and transferring them overseas.
The fraud began when Shigoo Technology Pvt. Ltd., an entity owned and controlled by Chinese nationals, launched a fake mobile application titled “HPZ Tokens” claiming investments would be used for cryptocurrency mining yielding very high returns. Within just three months, crores were collected and diverted by fraudsters targeting vulnerable investors during pandemic lockdowns.
Chinese Nationals Directed Shell Company Network
Wan Jun served as director of Jilian Consultants India Private Limited, a subsidiary of Chinese entity Jilian Consultants. With help from accomplice Dortse, Wan Jun successfully created several shell companies including Shigoo Technologies that became conduits to collect and launder proceeds from major organized cyber frauds.
The second Chinese national charged, Li Anming, played key roles directing operations alongside Wan Jun. CBI investigation revealed these frauds were connected and controlled by a single organized criminal syndicate based overseas.
Jilian Consultants hired professionals including company secretaries and chartered accountants to create shell companies that helped them run the operation with ease. Money collected was converted into cryptocurrencies before being sent out of the country.
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Exploitation of Payment Aggregators
The investigation revealed misuse of payment aggregation systems that had just taken off in India at the time of the Covid-19 pandemic. Payment aggregators were providing large collection and money disbursal services using technology to genuine companies, with systems allowing users to access large numbers of bank accounts simultaneously.
Fraudsters exploited this well-structured payment infrastructure to launder money at high speed from accounts of one shell company to another. The system also allowed them to partially disburse money back to investors to gain confidence, sustaining the fraud scheme longer.
Total money moved from bank accounts of these companies surpassed ₹1,000 crore within just a few months.
Ongoing Investigation in Cyber Fraud Network
CBI initially arrested six people named Dortse, Rajni Kohli, Sushanta Behra, Abhishek, Mohd Imdhad Husain, and Rajat Jain. The agency has now filed chargesheet against 27 accused persons and three companies, with further investigation continuing against other suspects.
The investigation revealed this was not an isolated incident but part of a large cyber crime network responsible for several scams targeting Indian citizens in the post-COVID period using loan apps, fake investment platforms, and bogus online job offers.
“The CBI remains steadfast in its unwavering commitment to dismantling these sophisticated cyber fraud networks through relentless operations like Chakra-V,” the agency said. The CBI will continue to fortify India’s digital economy, protect vulnerable investors, execute targeted arrests, seize assets, and forge international collaborations.”