Bengaluru
The Central Bureau of Investigation (CBI) has arrested five persons in a major crackdown under ‘Operation Chakra-V’ linked to the HPZ cryptocurrency token fraud, officials said on Saturday. Coordinated searches were conducted at seven locations across Delhi NCR, Hyderabad, and Bengaluru on October 3, yielding crucial digital evidence and financial records.
The probe revealed a sophisticated cross‑border conspiracy masterminded by foreign operators in collusion with Indian nationals. The fraud involved creating several shell companies in India, which were onboarded onto fintech and payment platforms to collect public funds illegally. These funds were pooled, converted into cryptocurrencies, and routed through multiple wallets before being sent abroad to disguise the crime proceeds.
According to the CBI, between 2021 and 2023, the syndicate executed cyber frauds nationwide using fake loan, job, investment, and cryptocurrency schemes. Victims were deceived through fake companies that opened mule bank accounts to collect money. The funds were then layered financially and converted to cryptocurrencies to transfer abroad.
The case is registered under charges of criminal conspiracy, impersonation, fraud, and offences under the Information Technology Act. The five arrested accused are now in judicial custody and will be presented before the court.
The CBI said further investigation will focus on tracing the cross‑border fund trail, identifying additional conspirators, and uncovering the full scale of the scam. Officials stressed their commitment to combating cyber‑enabled financial crime through intelligence‑driven operations, inter‑agency coordination, and advanced digital forensics to dismantle transnational fraud networks.
