ED Raids 11 Locations in Hashpe Crypto Fraud Case; Two Key Accused Arrested
The Enforcement Directorate (ED), Chennai Zonal Office-II, conducted search operations at 11 locations across Chennai, Coimbatore and Kolkata on September 1, 2026, as part of its money laundering investigation into the alleged Hashpe cryptocurrency investment fraud.
The investigation began following an FIR registered by the Cyber Crime Police in Puducherry against unidentified individuals in connection with the alleged cryptocurrency scam.
According to the ED, Hitesh Kumar, Imran Basha and Syed Usman, also known as Babu, allegedly joined hands with their associates to launch a fraudulent investment scheme under the name “Hashpe”. The platform was presented as a cryptocurrency trading opportunity, with investors encouraged to put their money into a purported digital currency called “TCX” in exchange for promises of lucrative returns.
The investigation revealed that the accused allegedly used lavish promotional events, Bollywood celebrities and extensive social media campaigns to attract investors. The value of the Hashpe token was reportedly inflated artificially to create interest and encourage more people to invest.
However, investors were allegedly prevented from withdrawing their money after funds had been collected. The ED further alleged that the money was diverted through bank accounts linked to shell companies, associates and relatives of the accused, leaving investors without access to their investments or the returns they had been promised.
An analysis of bank accounts reportedly showed that approximately ₹40 crore had been collected through the scheme. The funds were allegedly moved through multiple accounts and transactions to conceal their origin and facilitate money laundering.
The agency also found that a substantial portion of the investors’ money was allegedly transferred to the personal bank accounts of Imran Basha and Hitesh Kumar, as well as to businesses associated with them and their family members. According to the ED, the alleged proceeds of crime were used to finance lavish lifestyles and purchase immovable properties.
The investigation identified Imran Basha and Hitesh Kumar as key accused in the alleged money laundering activities connected to the Hashpe scheme.
During the searches, the ED seized documents and digital evidence believed to be relevant to the case. On September 3, 2026, the agency also arrested Imran Basha and Hitesh Kumar under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.
Both accused were produced before the Special Court under the PMLA, which granted the ED five days of custody for further investigation.
The investigation is continuing as the agency examines the alleged movement of investors’ funds and works to trace the proceeds of crime.
News Source : Directorate of Enforcement (ED) – Official Press Release, Government of India
