A new chapter of cryptocurrency-related fraud is unfolding in India. Bollywood actress Tamannaah Bhatia convicted for her probable role behind the HPZ Token crypto scam that badly soured thousands along with investors who staked most funds to it citing company’s influence people like Prashant Solanki hired up by Tirupati cum government banks on board too! According to sources, the Enforcement Directorate (ED), India’s top financial watchdog, is investigating if Bhatia’s presence at events held by an organization called HPZ Token helped vampirise legitimacy to allegedly a fraudulent platform which fleeced scores of investors.
The HPZ Token: A Crypto Scam Unfolded
The HPZ Token platform guaranteed its traders a relatively high profit, offering daily revenues ranging in the hundreds due to mining and Bitcoin operations. The investors were promised a “return” of ₹4,000 every day for three months if they deposited ₹57,000 (almost $678). But the program quickly fell apart as it paid only once before demanding more money from its victims even though it hadn’t delivered on what it offered. But after a while, the platform collapsed on itself, and investors found themselves in financial ruin.
Investigations into the scam revealed that the HPZ Token app was part of a broader crypto scam designed to launder money and mislead investors. The case originated from a complaint filed at the Cyber Crime Police Station in Kohima, Nagaland, before being transferred to the ED under the Prevention of Money Laundering Act (PMLA). It is now part of a larger crackdown on financial fraud and money laundering activities in India.
Celebrity Endorsement in Question
The known face of Bollywood, Tamannaah Bhatia, was recently interrogated by ED at Guwahati because she visited a promotional HPZ token event. There are concerns that this may have secured the support of Bollywood actress Shilpa Bhatia, who was reportedly paid an appearance fee to attend the event. There is no direct evidence against Bhatia in the scam but her role was being probed. The ED is especially keen to know if such promotion of the platform had helped boost their trust in investing, making it a part of the scam’s success.
Bhatia faced a similar investigation earlier on her alleged connection with such suspicious platforms. She had earlier faced probity inquiries due to her association with the Fairplay betting app, which was again a channel being investigated for running illegal bets. The recent appearance of Bhatia in promotions related to the Indian Premier League (IPL) on this app encouraged criticism over her alleged involvement in promoting illegal gambling activities.
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A Broader Investigation into Crypto Scams
The recent crypto scam activity carried out by the HPZ Token is the subject of an extensive investigation which concerns many entities and people involved. The ED investigation has already traced at least 299 entities accused of the scam, with 76 controlled by Chinese nationals. The vast majority are believed to be shell companies created solely for money laundering in online gaming or betting and, more recently, cryptocurrencies. The ED has so far attached assets valued ₹455 crore ($55 million) in the case, a pointer to the gigantic proportions of fraud.
Celebrity involvement is a recurring theme in these investigations and the recent case with Tamannaah Bhatia may point towards the growing accountability climate around public figures pushing toxic or fraudulent platforms. In the last few years, many Indian and global celebrities have been under the legal radar for endorsing not-so-safe financial opportunities like cryptocurrencies and NFTs. A wider conversation also continues around the role of public influencers in bathing financial products more broadly, particularly one as largely unregulated like cryptocurrencies.
Conclusion
No evidence has been found yet against Tamannaah Bhatia in the HPZ Token crypto scam, but it is an eye-opener for investors as well as celebs. While crypto scams evolve — often with sophisticated money laundering and fraudulent investment promises to regular traders — the place of celebrity endorsements in legitimizing these schemes continues to be a significant battleground. The case also highlights the fact that there should be better regulations in place for the cryptocurrency market to prevent any such schemes from abusing retail investors.
Thus, the recent move by authorities in India to act against crypto scams like that of HPZ Token signals how serious they are about clamping down on financial fraud in this industry — a fire sure to burn those who promise or inflict such activities equally brightly.
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