The Enforcement Directorate (ED) has conducted searches in Tamil Nadu and West Bengal as part of two separate money laundering investigations linked to an alleged cryptocurrency investment fraud and drug trafficking.
The agency searched a total of 17 premises in Chennai, Coimbatore, Kolkata and Nagapattinam. Of these, 11 premises were searched in connection with the Hashpe cryptocurrency fraud case, while six premises were searched in a separate case involving alleged proceeds from narcotics trafficking. Electronic devices and important documents were reportedly seized during the searches.
The ED’s Chennai Zonal Office-II conducted searches at 11 premises across Chennai, Coimbatore and Kolkata on September 1. The action was based on an investigation arising from an FIR registered by the Puducherry Cyber Crime Police. According to the agency, the investigation allegedly uncovered a fraudulent investment scheme that was presented to investors as a cryptocurrency trading platform.
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How Were Investors Allegedly Lured Into The Crypto Scheme?
According to the ED, Hitesh Kumar, Imran Basha and Syed Usman allegedly operated a fraudulent investment scheme by projecting it as a cryptocurrency trading venture. Investors were allegedly promised lucrative returns through a purported token called TCX.
The agency alleged that promotional events, celebrity endorsements and extensive social media campaigns were used to attract investors. The value of the purported TCX token was allegedly inflated artificially, encouraging more people to invest in the scheme.
According to the ED, after substantial amounts of money had been collected from investors, withdrawals were allegedly blocked. The agency claims that around ₹40 crore was collected from investors and subsequently diverted through shell entities, associates and relatives.
The investigation is now focused on tracing the movement of the allegedly diverted funds, identifying the entities and individuals who received the money and determining the role of other suspected associates.
Who Has Been Arrested In The Cryptocurrency Fraud Case?
Basha and Kumar were arrested on September 3 in connection with the alleged cryptocurrency fraud. A special court subsequently granted the agency five days of custody of the two accused.
The ED is examining the alleged operation of the investment platform, financial transactions, associated entities and the possible involvement of additional persons. Electronic devices and documents seized during the searches are expected to help investigators reconstruct the alleged flow of funds.
A key aspect of the investigation is to establish where the money collected from investors was transferred and whether any individuals or entities benefited from the alleged transactions.
Where Did The ED Conduct Searches In The Crypto Case?
The ED’s Chennai Zonal Office-II conducted searches at 11 premises across Chennai, Coimbatore and Kolkata on September 1. The searches were part of the investigation into the alleged cryptocurrency investment fraud arising from an FIR registered by the Puducherry Cyber Crime Police.
The agency is examining financial transactions and documentary and electronic evidence to determine the alleged flow of investor funds.
What Is The Separate Drug Trafficking Money Laundering Case?
Separately, the ED’s Madurai Sub-Zonal Office conducted searches at six premises in Nagapattinam on September 3 in a money laundering investigation allegedly linked to methamphetamine and ganja trafficking.
According to the agency, M Alex, described by the ED as a repeat offender, was intercepted by the Narcotics Control Bureau (NCB) in April 2025 while allegedly carrying methamphetamine. The subsequent investigation examined the alleged proceeds of drug trafficking and their use in acquiring assets.
How Were Alleged Drug Proceeds Invested?
The ED has alleged that proceeds generated from narcotics trafficking were invested in properties, shrimp farms and vehicles in Nagapattinam, Velankanni and Thaliyamadi. Documents and electronic devices allegedly linked to the financial network were seized during the searches.
The agency is now examining the source and movement of funds in both cases, along with the roles of individuals and entities allegedly connected to the transactions. In the cryptocurrency case, investigators are tracing the money allegedly collected from investors, while in the narcotics case, they are examining the alleged conversion of criminal proceeds into properties and other assets.
The searches form part of ongoing investigations into alleged money laundering networks operating through different financial channels. The ED is examining documentary and electronic evidence to establish the alleged flow of funds and identify further beneficiaries or associates.
The allegations in both cases are still under investigation and have not been established in court. The accused are presumed innocent unless proven guilty through due legal process. Further action will depend on the findings of the ongoing investigations.
