Chennai. The Enforcement Directorate (ED) has arrested two accused in an alleged ₹146 crore money laundering case linked to the Hashpe cryptocurrency investment scheme. The arrested individuals have been identified as Syed Usman alias Babu and Dhamodharan Balachandran. Both were arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, on September 22. They were produced before a special PMLA court, which sent them to three days of judicial custody.
The investigation was initiated on the basis of a First Information Report registered by the Puducherry Cyber Crime Police Station under provisions of the Bharatiya Nyaya Sanhita, 2023, and the Information Technology Act, 2000. The ED subsequently began investigating the alleged laundering of proceeds generated through the investment scheme.
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According to the agency, Syed Usman, Imran Basha and their associates established an investment scheme under the name Hashpe and presented it as a cryptocurrency trading platform. Investors were allegedly promised lucrative returns through a purported cryptocurrency called TCX. The ED has alleged that investors transferred funds through bank accounts, cryptocurrency transactions and cash.
The investigation also allegedly found that the accused used promotional activities to increase the credibility and appeal of the scheme. According to the ED, launch events and a car award ceremony featuring Bollywood celebrities were organised to attract investors. The scheme also allegedly relied on referral commissions, social media promotion and an event hosted on a cruise ship in Mumbai.
The ED said that approximately ₹146 crore was collected through the scheme. This included around ₹16 crore identified as proceeds of crime, ₹10.52 crore credited to a bank account operated in the name of Hify Circle, and TCX coins valued at approximately ₹120 crore, which the agency has treated as proceeds of crime.
The agency has alleged that Syed Usman and Dhamodharan played key roles in the acquisition, layering and diversion of the alleged proceeds of crime. According to the ED, Syed Usman handled substantial cash investments and operated the Hify Circle bank account through which investor funds were received.
Dhamodharan, meanwhile, has been accused of developing and managing the Hashpe software and database. The ED has alleged that he was also involved in cryptocurrency-related operations of the platform, including the management of its digital wallet functions.
The investigation further allegedly revealed that funds collected from investors were transferred to the personal bank accounts of the accused, their family members and entities linked to them. The agency has also alleged that proceeds of crime were invested in cryptocurrency and immovable properties.
Earlier, on September 1, the ED conducted searches at 11 premises in Chennai, Coimbatore and Kolkata in connection with the case. The searches were aimed at examining financial transactions and material allegedly linked to the money laundering network.
Imran Basha and Hitesh Kumar, who are also accused in the case, are already in judicial custody. The ED is continuing to investigate the alleged roles of the accused, the movement of funds collected from investors, bank transactions, cryptocurrency transfers and investments in immovable properties.
The allegations against the accused remain subject to investigation and judicial proceedings.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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