The charge sheet follows accusations of investment fraud involving Bitcoin mining and other cryptocurrencies. After the prosecution's complaint under the Prevention of Money Laundering Act (PMLA) was acknowledged by the special court in Dimapur, Nagaland, this development was formally notified.

A local newspaper reported that the charge sheet names two organizations run by foreign persons and 76 entities controlled by Chinese nationals, including 10 directors of Chinese ancestry. The ED's move stems from a First Information Report (FIR) filed by the Kohima Police Cyber Crimes Unit, which named many people as participants in a cryptocurrency mining scheme that promised large profits. The crooks conned investors using a smartphone app called “HPZ Token,” according to the Kohima Police.
 

Subsequent inquiries uncovered the creation of merchant IDs and bank accounts by "shell entities" with "dummy" directors with the intention of "layering" money received through illegal means. The ED claims that these money were obtained by illegal internet gambling, gaming, and Bitcoin mining ventures, all of which tricked investors with the promise of large profits.
 

To be precise, it was promised that an investment of INR 57,000 (about $688) would produce daily returns of INR 4,000 (roughly $48.27) over the course of three months; however, this promise remained unmet after the initial payment. The article also stated that assets and deposits worth INR 455 crore, or roughly USD 546 million, had been seized as a result of the ED's nationwide probe.

In addition, nine foreign businesses are under investigation by the ED for their involvement in money laundering from a Bitcoin-based Ponzi scam managed by Singapore-based Variable Tech Pte Ltd. Through the use of false promises of large returns, this scheme collected 80,000 bitcoins, with INR 6,606 crore being diverted for the acquisition of international real estate through the firms that are the subject of an inquiry.
 

The firms implicated in the purported money laundering are based in Hong Kong, Dubai, and Estonia. Notable names in the group include Crypto Capital, Estonia, and Amaze Mining Blockchain Research Ltd. The Ministry of Finance took action against Binance and other offshore exchanges for violating anti-money laundering regulations, and this investigation is a part of the government of India's larger attempt to control the cryptocurrency sector.
 

India's Financial Intelligence Unit (FIU) sent compliance letters to multiple exchanges in December, including Binance, KuCoin, and Huobi. In accordance with the Prevention of Money Laundering Act (PMLA), the FIU is taking action to safeguard regional investors against these non-compliant platforms, demonstrating a determined attempt to suppress illicit activity in the cryptocurrency market.