CBI raids 7 locations, arrests 5 persons in sophisticated cyber fraud

The raid exposes a sophisticated and large scale international cyber fraud running into hundreds of crores of rupees

New Delhi: The Central Bureau of Investigation (CBI) on Friday carried out coordinated searches at seven locations in the national capital region, Hyderabad and Bengaluru and arrested five individuals in connection with a probe into HPZ cryptocurrency token fraud, exposing a sophisticated and large scale international cyber fraud running into hundreds of crores of rupees, the agency said on Saturday.

CBI said its latest raids are part of its ongoing Operation Chakra-V against cybercrimes. (Representational image)

HPZ Token App was earlier investigated by the Enforcement Directorate (ED). It had named 299 accused persons and entities including 76 Chinese controlled entities in a charge sheet filed under prevention of money laundering act (PMLA) in 2024.

CBI said its latest raids are part of its ongoing Operation Chakra-V against cybercrimes, in which online gaming betting companies, cyber criminals, illegal crypto exchanges and financial frauds are being targeted for the past six-seven months.

This case, a CBI spokesperson said, has been registered under criminal conspiracy, impersonation and fraud and offences under information technology act and pertains to an elaborate criminal conspiracy orchestrated by foreign-based masterminds in collusion with Indian nationals.

Between 2021 and 2023, according to the CBI spokesperson, “organized cyber frauds were committed across India in the guise of loan, job, investment, and cryptocurrency schemes”.

“These frauds were facilitated through the creation of multiple shell companies, which were used to open mule bank accounts. The proceeds collected from victims were routed through these accounts, converted into cryptocurrencies, and subsequently transferred outside India through complex financial layering and crypto conversion routes,” the spokesperson added in the statement.

Investigations have revealed that several shell entities were incorporated in India at the instance of foreign perpetrators. These companies were onboarded on various fintech and payment aggregator platforms to collect and channel the public funds, the spokesperson said.

“The funds collected were consolidated, converted into crypto currencies, and transferred to various crypto wallets, eventually being remitted across borders to conceal the proceeds of crime,” the statement added.

Following the raids on Friday, five accused persons have been arrested for their active involvement in executing the fraud. However, the agency didn’t share their names.

“Further investigation is underway to trace the cross-border financial trails, identify other individuals and entities involved, and unravel the full extent of the conspiracy. CBI remains committed to combating cyber-enabled financial crimes through sustained intelligence-led operations, inter-agency coordination, and the use of advanced digital forensics to counter complex transnational fraud networks,” the agency said.