The Enforcement Directorate’s Chennai Zonal Office has arrested Syed Usman, also known as Babu, and Dhamodharan Balachandran in a money laundering investigation linked to the alleged Hashpe cryptocurrency fraud involving ₹146 crore.
Both accused were arrested on September 22, 2026 under Section 19 of the Prevention of Money Laundering Act. They were produced before the Special Court under the PMLA, which granted three days of judicial custody.
How Did the Investigation Begin?
The money laundering investigation originated from an FIR registered by the Cyber Crime Police Station in Puducherry under the Bharatiya Nyaya Sanhita, 2023, and the Information Technology Act, 2000.
Police found that Syed Usman, Imran Basha and their associates had allegedly established an investment scheme known as Hashpe and presented it as a cryptocurrency trading platform.
Investors were allegedly attracted with promises of substantial returns through a supposed cryptocurrency called TCX. Money was collected through bank transfers, cryptocurrency and cash.
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How Were Investors Attracted to Hashpe?
The accused allegedly organised a launch event and a ceremony at which cars, including Bollywood celebrity-branded vehicles, were awarded to make the scheme appear credible.
Referral commissions were also used to attract more investors. The scheme was promoted on social media, while another promotional event was held on a cruise ship in Mumbai.
How Was the ₹146 Crore Allegedly Raised?
A total of ₹146 crore was allegedly raised through three main sources.
Of this, ₹16 crore was obtained in cash as part of the proceeds of crime. Another ₹10.52 crore was credited to a bank account held in the name of Hify Circle, while ₹120 crore was received in the form of TCX coins.
Syed Usman and Dhamodharan were allegedly instrumental in obtaining, staking and redirecting money generated through the alleged criminal activity.
What Roles Did the Accused Allegedly Play?
Usman allegedly handled large amounts of cash and managed the Hify Circle bank account that received money from investors.
Dhamodharan allegedly designed and managed the Hashpe software, its database and cryptocurrency operations, including the platform’s wallet functions.
The funds were allegedly channelled into private bank accounts belonging to Syed Usman, Dhamodharan, members of their families and other associated organisations.
Where Was the Money Allegedly Spent?
Part of the money was allegedly converted into cryptocurrency and invested in property.
The funds were also allegedly used to purchase cars for certain investors, pay for appearances by Bollywood celebrities, organise cruises and large public events, give gold as gifts and finance other luxurious personal expenses.
What Action Has the ED Taken So Far?
On September 1, 2026, the Enforcement Directorate carried out searches at 11 locations across Chennai, Coimbatore and Kolkata.
Two other accused in the case, Imran Basha and Hitesh Kumar, are already in judicial custody.
The investigation found what was described as a consistent movement of funds, beginning with aggressive promotion and investor collections, followed by routing money through multiple accounts and wallets and eventually directing it towards personal assets and extravagant expenditure.
Further investigation is continuing.
The case shows how an investment platform can allegedly use social media promotion, referral commissions, public events and displays of wealth to build credibility. The investigation is now examining how investor funds moved through bank accounts, cryptocurrency wallets and other channels before allegedly reaching personal assets and luxury expenses.
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