Dubai hotelier accused of Dh950 million crypto scam arrested in India
The 39-year-old suspect, who reportedly ran a four-star hotel in Dubai Marina, was allegedly the key figure behind the HPZ Token scam — a fraudulent cryptocurrency scheme that duped thousands of Indians with promises of unrealistically high returns.
Khaleej Times is withholding the man's name for legal reasons. He was declared a fugitive economic offender by an Indian court earlier this year — a designation later made public by the Enforcement Directorate (ED).
The ED said it has identified laundered proceeds of over Rs2.2 billion (Dh956 million) in the HPZ Token case. The suspect allegedly used his Dubai businesses to move illegal funds out of India via payment gateways, then convert them into cryptocurrency, and hand over the crypto to Chinese handlers after taking a cut.
'He was arrested in Delhi's Rohini Sector 11 area and is on police remand,' Faridabad Police PRO Yashpal Yadav told Khaleej Times on Saturday. "It's a big catch." He said the suspect was tracked through a payment gateway account that had received a portion of the defrauded money. 'The bank account was opened with forged credentials,' Yadav added.
The accused had reportedly moved to Dubai in 2022, shortly after the ED launched its investigation into the HPZ Token racket. According to Faridabad Police, he returned to India around three weeks ago after the Punjab and Haryana High Court quashed a lookout circular against him but ordered him to cooperate with investigators.
Police said the man and his business partner were running a parallel cyber fraud operation alongside their hospitality ventures. 'He kept 30 per cent of the funds and routed the remaining to his Dubai-based partner, who managed the other end of the network,' Yadav said.
The arrest follows a complaint filed in January 2024 by a Faridabad-based engineer who was duped in a fake stock market investment scheme promoted on social media. The victim is said to have transferred Dh880,000 to 11 different bank accounts, all linked to the scam.
Faridabad Police said the man is the 12th person arrested in the case. Investigators are now trying to locate his associate and three others. 'We are in the process of issuing a lookout circular against his partner so he can be arrested if he enters India,' Yadav said.
The HPZ Token scam has emerged as one of India's largest tech-enabled financial frauds. Victims were lured into downloading a mobile app and investing in so-called crypto-mining schemes. Early fake profits were shown to build trust, only for the funds to vanish once larger amounts were invested.
The ED has so far frozen or attached assets worth Rs497 crore (Dh216 million) linked to the case and uncovered over 200 shell companies allegedly created by the suspect and his associates to conceal the money trail.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
2 hours ago
- Khaleej Times
Birkenstock cracks down on fakes in India, court-ordered factory visits held, sources say
Indian court-appointed legal representatives inspected small-scale factories in recent weeks to seize suspected counterfeit Birkenstock footwear, after the German brand launched an infringement lawsuit, people familiar with the matter said. Birkenstock's case is occurring around the same time other shoemakers are in the news in India. Crocs this month secured a court nod to pursue a nine-year-old infringement case, while Prada is facing heat over showcasing sandals similar to ethnic Indian footwear without initially giving credit to India. Reuters is first to report the Indian case details related to Birkenstock sandals, which have evolved from a counterculture symbol to a trendy fashion item, and are also popular in India. In May, Birkenstock filed an infringement lawsuit in the Delhi High Court against four footwear traders, four factories and two unnamed individuals. Its complaint stated an internal investigation found counterfeits were being made in rural areas in and around the tourist hub of Agra, and sold locally and exported to other countries. On May 26, Delhi judge Saurabh Banerjee issued a confidential order that was only made public on the court's website last week. It said 10 local lawyers were appointed as commissioners to visit the suspected factories. The judge said commissioners can "seize, pack and seal the infringing products", and his order included photographs that Birkenstock submitted showing the alleged counterfeit footwear and shoe boxes with the company's branding. The visits have been completed and reports were submitted confidentially to the judge, the three people familiar with the matter said on Saturday, asking to remain unidentified. The next hearing in the case is set for October 6. The visits were conducted in Agra, home to the Taj Mahal, and in India's capital New Delhi, the people said, declining to give further details from their inspection. Birkenstock did not respond to queries from Reuters and its lawyers from Delhi-based law firm Lall and Sethi declined to comment, citing the pending legal case. In his May order, Banerjee said he reviewed photographs and samples of the alleged counterfeit products in court, and they "seem like a cheap knock off" of Birkenstock products. "There is all likelihood of the public getting deceived ... The differences, hardly if any, are not something which can be discernable to the naked eyes," he wrote. Once popular with hippies, tech enthusiasts and medical professionals, Birkenstock gained widespread attention after Australian actress Margot Robbie wore a pair of pink Birkenstocks in the final scene of the 2023 hit movie "Barbie". In February, a German court said Birkenstock sandals do not qualify as art and are therefore not protected by copyright, dismissing a lawsuit brought by the German company. In India, Birkenstock footwear for women is priced between $46 and $233.
Filipino Times
9 hours ago
- Filipino Times
Crypto investment scam mastermind nabbed in India
A Dubai-based hotelier accused of orchestrating a multi-million-dirham cryptocurrency scam has been arrested in India, as reported by Khaleej Times. Authorities in Faridabad, Haryana, confirmed the suspect's arrest, calling him a 'big catch' in a sweeping cyber fraud investigation. The 39-year-old businessman, who previously ran a four-star hotel in Dubai Marina, allegedly played a key role in a fake crypto investment scheme that promised huge returns and duped thousands of victims. The Enforcement Directorate (ED) reported that over Rs2.2 billion (Dh956 million) in illicit funds were funneled through fake bank accounts, converted into cryptocurrency, and transferred to overseas handlers, with the suspect keeping a significant share. The accused fled to Dubai in 2022 when the investigation began, and only recently returned to India after a court allowed it under the condition he cooperate with investigators. Authorities say he continued to operate online scams alongside his hospitality ventures, sending 70% of stolen funds to a Dubai-based partner. He was tracked through a forged payment gateway account, making him the 12th arrest in this large-scale financial fraud case. The investigation continues as police search for his associate and other accomplices.
Khaleej Times
15 hours ago
- Khaleej Times
Dubai hotelier accused of Dh950 million crypto scam arrested in India
A Dubai hotelier accused of running a fake investment scheme worth over Dh950 million has been arrested in India. Faridabad Police, in the northern Indian state of Haryana, confirmed the arrest to Khaleej Times on Saturday, describing it as a 'big catch'. The 39-year-old suspect, who reportedly ran a four-star hotel in Dubai Marina, was allegedly the key figure behind the HPZ Token scam — a fraudulent cryptocurrency scheme that duped thousands of Indians with promises of unrealistically high returns. Khaleej Times is withholding the man's name for legal reasons. He was declared a fugitive economic offender by an Indian court earlier this year — a designation later made public by the Enforcement Directorate (ED). The ED said it has identified laundered proceeds of over Rs2.2 billion (Dh956 million) in the HPZ Token case. The suspect allegedly used his Dubai businesses to move illegal funds out of India via payment gateways, then convert them into cryptocurrency, and hand over the crypto to Chinese handlers after taking a cut. 'He was arrested in Delhi's Rohini Sector 11 area and is on police remand,' Faridabad Police PRO Yashpal Yadav told Khaleej Times on Saturday. "It's a big catch." He said the suspect was tracked through a payment gateway account that had received a portion of the defrauded money. 'The bank account was opened with forged credentials,' Yadav added. The accused had reportedly moved to Dubai in 2022, shortly after the ED launched its investigation into the HPZ Token racket. According to Faridabad Police, he returned to India around three weeks ago after the Punjab and Haryana High Court quashed a lookout circular against him but ordered him to cooperate with investigators. Police said the man and his business partner were running a parallel cyber fraud operation alongside their hospitality ventures. 'He kept 30 per cent of the funds and routed the remaining to his Dubai-based partner, who managed the other end of the network,' Yadav said. The arrest follows a complaint filed in January 2024 by a Faridabad-based engineer who was duped in a fake stock market investment scheme promoted on social media. The victim is said to have transferred Dh880,000 to 11 different bank accounts, all linked to the scam. Faridabad Police said the man is the 12th person arrested in the case. Investigators are now trying to locate his associate and three others. 'We are in the process of issuing a lookout circular against his partner so he can be arrested if he enters India,' Yadav said. The HPZ Token scam has emerged as one of India's largest tech-enabled financial frauds. Victims were lured into downloading a mobile app and investing in so-called crypto-mining schemes. Early fake profits were shown to build trust, only for the funds to vanish once larger amounts were invested. The ED has so far frozen or attached assets worth Rs497 crore (Dh216 million) linked to the case and uncovered over 200 shell companies allegedly created by the suspect and his associates to conceal the money trail.
