ED Arrests Two in ₹40-Crore Hashpe Cryptocurrency Fraud Case, Conducts Raids at 11 Locations
The Directorate of Enforcement (ED), Chennai Zonal Office-II, conducted searches at 11 premises across Chennai, Coimbatore and Kolkata on September 1, 2026, as part of a money-laundering investigation into an alleged ₹40-crore cryptocurrency investment fraud linked to the Hashpe platform.
The searches were carried out under the Prevention of Money Laundering Act (PMLA), 2002. The ED launched its investigation based on an FIR registered by the Cyber Crime Police in Puducherry against unidentified persons in connection with the alleged Hashpe cryptocurrency fraud.
According to the ED’s investigation, Hitesh Kumar, Imran Basha and Syed Usman, also known as Babu, allegedly operated a fraudulent investment scheme under the name Hashpe, presenting it as a cryptocurrency trading platform. Investors were reportedly lured with promises of attractive returns through trading in a purported cryptocurrency called “TCX”.
The agency alleges that the accused used lavish promotional events, Bollywood celebrities and extensive social media campaigns to attract investors. The purported value of the Hashpe token was allegedly inflated artificially to encourage further investments.
However, investors were subsequently unable to withdraw their money, according to the ED. The funds collected were allegedly diverted through bank accounts linked to shell entities, associates and relatives of the accused, leaving investors without access to their invested capital or the promised returns.
An analysis of bank accounts reportedly revealed that approximately ₹40 crore had been collected through the scheme. The funds were allegedly routed through multiple accounts and transactions to conceal their origin and movement.
The ED further alleges that a substantial portion of the investors’ money was 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 suspected proceeds of crime were allegedly used to finance lavish lifestyles and acquire immovable properties.
The agency identified Imran Basha and Hitesh Kumar as key accused in the alleged money-laundering activities connected to the case.
During the searches, the ED seized incriminating documents and digital evidence relevant to the investigation. Both Imran Basha and Hitesh Kumar were arrested on September 3, 2026, under Section 19 of the PMLA, 2002, and produced before the Special Court under the Act. The court subsequently granted the ED five days of custody of both accused for further investigation.
News Source : Directorate of Enforcement (ED) – Official Press Release, Government of India
