CBI files chargesheet vs 30 in HPZ Token fraud, incl. Chinese nationals

December 10, 2025

The Central Bureau of Investigation (CBI) has filed a formal charge sheet against 30 individuals, including two Chinese nationals, in connection with the high-profile HPZ Token fraud case. The case involves an alleged cryptocurrency investment scam that lured investors with promises of extraordinary returns, reportedly collecting over ₹1,000 crore from unsuspecting people across India. Authorities say the case highlights the growing sophistication of cyber-enabled financial fraud targeting domestic and international investors.

CBI files Chargesheet against 30 including Two Chinese Nationals in Multi Crore Cyber Investment Fraud Case pic.twitter.com/1VeFlI1RYE

— Central Bureau of Investigation (India) (@CBIHeadquarters) December 10, 2025

Background of the Scam

According to investigation reports, the HPZ Token scam operated between 2021 and 2023. Fraudsters allegedly set up multiple shell companies and “mule” bank accounts to siphon off investor funds, which were later converted into cryptocurrency and transferred abroad. Investors were reportedly assured guaranteed profits through the HPZ Token app, which falsely claimed to generate daily returns by trading or mining digital assets.

The CBI first detected irregularities when several investors reported non-payment of promised returns. Initial investigations revealed that large-scale recruitment and referral schemes were used to expand the scam’s reach, creating an extensive network across several Indian states.

Raids and Evidence Collection

In October 2025, the CBI launched “Operation Chakra‑V,” conducting coordinated raids at seven locations in Delhi NCR, Hyderabad, and Bengaluru. During the operation, five key suspects were arrested, and investigators seized digital devices, financial records, and cryptocurrency wallets. The evidence collected during these raids formed the backbone of the charge sheet filed against the accused. Authorities also recovered extensive transaction logs and account details linking the suspects to the fraudulent activities.

Details of the Accused

The current charge sheet targets 30 individuals, including two foreign nationals from China, highlighting the transnational dimension of the scam. The accused allegedly played roles ranging from promoting the HPZ Token, managing investor accounts, laundering funds, and facilitating cross-border transfers of illicit proceeds. The involvement of foreign nationals points to international coordination in the execution of the fraud, complicating the investigation and necessitating cooperation with global financial and cybercrime agencies.

Modus Operandi and Scale

Investigators say the HPZ Token scheme used aggressive marketing tactics to attract investors. Individuals were promised daily returns of up to ₹4,000 for an initial investment of ₹57,000, creating unrealistic expectations of profit. The scam exploited digital payment platforms, fintech gateways, and virtual bank accounts to collect and route funds. After collection, the money was allegedly laundered through cryptocurrency wallets and shell companies, making the financial trail difficult to track.

Experts note that the HPZ Token scam reflects a broader trend of cyber-enabled financial crimes in India, where online investment platforms and digital currencies are increasingly misused to target unsuspecting investors.

Legal Proceedings and Next Steps

With the charge sheet now filed, the CBI will move forward with prosecution under sections of the Indian Penal Code, including criminal conspiracy and cheating, as well as under the Information Technology Act for cyber offences. Investigators continue to trace the full financial network involved in the fraud, including overseas transactions and shell entities, to ensure all culpable parties are brought to justice.

The Enforcement Directorate (ED) is also reportedly examining the case for potential money-laundering violations, while authorities urge investors to exercise caution and verify the authenticity of digital investment platforms.

Public Impact and Warnings

The HPZ Token scam has affected thousands of investors, many of whom lost their entire savings. Cybercrime experts have warned the public to remain vigilant against fraudulent investment schemes and have called for stricter regulation of digital currencies and online investment platforms. Authorities emphasize that the filing of the charge sheet is an important step toward accountability but that prevention through awareness remains key.