The ED has arrested two people in connection with an alleged ₹40-crore cryptocurrency investment fraud operated under the name “HashPe”, following searches at 11 premises in Chennai, Coimbatore and Kolkata.
The agency alleged that money collected from investors was diverted and layered for money-laundering purposes.
The searches were conducted on September 1, 2026, as part of a money-laundering investigation linked to the alleged cryptocurrency fraud. According to the ED, the case originated from an FIR registered by the Cyber Crime Police in Puducherry against unidentified persons.
Investors Allegedly Lured With Lucrative Returns
The ED alleged that Hitesh Kumar, Imran Basha and Syed Usman alias Babu, along with their associates, floated a fraudulent investment scheme under the name HashPe and presented it as a cryptocurrency trading platform. Members of the public were allegedly induced to invest money on promises of lucrative returns through trading in a purported cryptocurrency called “TCX”.
According to the agency, the operation used lavish promotional events, Bollywood celebrities and extensive social media campaigns to attract investors. The purported value of the HashPe token was allegedly inflated to encourage further investments.
The ED claimed that investor withdrawals were subsequently blocked and the collected money was diverted to bank accounts linked to shell entities, associates and relatives of the accused. As a result, investors allegedly lost access to both their invested money and the promised returns.
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ED Traces Around ₹40 Crore in Alleged Transactions
An analysis of bank accounts showed that approximately ₹40 crore had been collected through the alleged scheme, according to the ED. The agency said the money was subsequently diverted and layered for alleged money-laundering purposes.
A substantial portion of investors’ money was allegedly transferred to the personal bank accounts of Imran Basha and Hitesh Kumar, as well as to business entities associated with them and their family members. The ED further alleged that proceeds from the activities were used to finance lavish lifestyles and acquire immovable properties.
Searches conducted as part of the investigation resulted in the seizure of documents and digital evidence that the agency described as incriminating and related to the alleged offence of money laundering.
Two Arrested, Sent to Five Days’ Custody
Imran Basha and Hitesh Kumar were arrested on September 3 under Section 19 of the Prevention of Money Laundering Act, 2002. They were subsequently produced before the Special Court under the PMLA, which granted five days’ custody of both accused.
The investigation into the alleged HashPe cryptocurrency fraud remains under way.
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