ED files 2nd charge sheet in HPZ Token crypto scam, 437 accused named
Synopsis
The ED's second supplementary charge sheet in the HPZ Token crypto scam names 437 accused in total — including multiple Chinese nationals and Indian fintech firms — in a ₹2,200 crore fraud that ran for just two months in 2021 before vanishing with investors' money. The expanding list signals one of the most complex cross-border money-laundering probes in India's crypto enforcement history.
Key Takeaways
The Enforcement Directorate filed a second supplementary prosecution complaint on 30 April 2025 before the Special Court for PMLA cases in Dimapur, Nagaland .
87 new accused have been added, bringing the cumulative total to 437 accused across all three prosecution complaints.
Proceeds of crime are identified at approximately ₹2,200 crore ; the ED has attached or frozen over ₹662 crore to date.
Multiple Chinese nationals are named, including directors of M/s Zhudao Infotech Private Limited , which allegedly operated as an unlicensed payment aggregator without an RBI licence.
Indian fintech firms including M/s Safexpay Technology and M/s Paygate India are accused of misusing payment gateway infrastructure to layer illicit funds.
The HPZ Token scam ran from June 2021 to August 2021 , promising returns via Bitcoin mining before abruptly shutting down.
The Enforcement Directorate (ED) on Thursday, 30 April 2025, filed a second supplementary prosecution complaint before the Special Court for PMLA cases in Dimapur, Nagaland, in connection with the HPZ Token cryptocurrency investment scam — a fraud with identified proceeds of crime of approximately ₹2,200 crore. The latest filing adds 87 new accused, bringing the cumulative total to 437, and exposes a sprawling network of Chinese-linked entities and Indian fintech intermediaries allegedly used to launder investor funds.
Background and Timeline of the Case
The HPZ Token scam originated in June 2021, when an app-based cryptocurrency investment scheme lured investors across India with promises of exponential returns through investment in Bitcoin mining machines. The platform was abruptly shut down in August 2021, leaving thousands of investors unable to access their funds.
The case has its roots in three First Information Reports registered by the Cyber Crime Police Station, Kohima, Nagaland; the CID PS, Ulubari, Guwahati; and the Central Bureau of Investigation (CBI), Delhi. An Enforcement Case Information Report (ECIR) was registered on 12 April 2022. The Main Prosecution Complaint was filed on 4 March 2024, followed by the first Supplementary Prosecution Complaint on 12 January 2026.
Key Accused and the Chinese Connection
Earlier investigations identified Bhupesh Arora and his associates as the alleged key conspirators behind the scam. They reportedly used a network of shell entities, mule accounts, hawala operators, and foreign currency exchangers to launder proceeds of crime collected from investors.
A notable pattern emerging from the second supplementary complaint is the continued trail of Chinese-linked entities used to collect and layer proceeds of crime. Multiple Chinese nationals have been named across the three prosecution complaints, including Linlei Yuan (M/s Magic Data Technology), Zhou Jie (M/s Larting Pvt. Ltd.), Ms. Wan Jun (M/s Jilian Consultants), Ming Lou and Jian Li (M/s Zhudao Infotech), Yanpeng QU (M/s Mad-Elephant Network Technology), Yi Liu (M/s Omelette Technology), and Kevin Huang (M/s Adexter Concepts), among others.
Investigators found that M/s Zhudao Infotech Private Limited, run by Ming Lou as General Manager and Jian Li as Director, was operating as an unlicensed payment aggregator — without a Reserve Bank of India (RBI) licence — and was allegedly routing proceeds of crime from multiple online gaming, betting, and Ponzi investment scams, not limited to HPZ Token. Several merchant entities onboarded by Zhudao were found to be non-operational at their registered addresses, with dummy directors paid nominal amounts to lend their names.
Indian Fintech Entities Under the Scanner
The second supplementary complaint also names Indian payment gateway companies and fintech intermediaries. M/s Paygate India Pvt. Ltd, M/s Safexpay Technology Private Limited, M/s Virtous Payment Solutions LLP, M/s Intrapay Product Solutions, and M/s IECS Consultancy Ltd. — through key managerial personnel Ravi Shankar Gupta, Aditya Oberoi, Pankaj Tripathi, and Joy Oberoi — have allegedly helped launder proceeds of crime by misusing payment gateway infrastructure and floating dummy entities.
Investigators say these entities employed sophisticated layering techniques through a multi-tiered web of fintech companies, payment gateways, e-commerce entities, gaming companies, and cryptocurrency assets to obscure the origin of illicit funds. The web of interconnected entities — many sharing common addresses, email IDs, and directors — points, according to the ED, to an organised, pre-planned money-laundering operation.
Scale of Fraud and Attachments So Far
The proceeds of crime in the matter have been identified at approximately ₹2,200 crore. The ED has so far attached or frozen more than ₹662 crore of proceeds of crime during the course of its investigation. The newly added 87 accused include payment gateway companies, fintech intermediaries, e-commerce entities, and their directors spread across multiple states.
Further investigation is currently underway, and additional filings cannot be ruled out as the probe widens.
Point of View
Combined with Indian payment gateways that reportedly looked the other way, points to systemic gaps that go beyond any single scam. The RBI's oversight of payment aggregators has tightened since 2022, but this case suggests that enforcement lagged well behind policy. With 437 accused and only ₹662 crore of a ₹2,200 crore pie recovered, the ED's work is far from done — and the scale of what remains unrecovered should concern regulators as much as prosecutors.
NationPress
1 May 2026
Frequently Asked Questions
What is the HPZ Token cryptocurrency scam?
HPZ Token was an app-based cryptocurrency investment scheme that promised exponential returns through investment in Bitcoin mining machines. It launched in June 2021 and was shut down by its operators in August 2021, leaving thousands of Indian investors unable to access their funds, with proceeds of crime estimated at approximately ₹2,200 crore.
How many accused have been named in the HPZ Token case so far?
A total of 437 accused have been named across the Main Prosecution Complaint and two supplementary complaints filed by the ED. The second supplementary complaint, filed on 30 April 2025, added 87 new accused including payment gateway companies, fintech intermediaries, and e-commerce entities.
What is the role of Chinese entities in the HPZ Token scam?
Investigators found a continued trail of Chinese-linked entities used to collect and layer proceeds of crime. M/s Zhudao Infotech Private Limited, run by Chinese nationals Ming Lou and Jian Li, allegedly operated as an unlicensed payment aggregator routing funds from multiple online scams. Several other Chinese nationals have also been named across the three prosecution complaints.
How much money has the ED recovered or attached in this case?
The ED has attached or frozen more than ₹662 crore of proceeds of crime to date. The total proceeds of crime in the matter have been identified at approximately ₹2,200 crore, meaning a significant portion remains unrecovered as investigations continue.
Which Indian fintech companies are accused in the HPZ Token case?
Indian entities named include M/s Paygate India Pvt. Ltd, M/s Safexpay Technology Private Limited, M/s Virtous Payment Solutions LLP, M/s Intrapay Product Solutions, and M/s IECS Consultancy Ltd. Their key managerial personnel are accused of misusing payment gateway infrastructure to launder proceeds of crime from the HPZ Token scam and other illegal schemes.
