ED Arrests Two in ₹40 Crore Hashpe Cryptocurrency Fraud After Raids in Chennai
The Enforcement Directorate’s Chennai Zonal Office-II has arrested two key accused following searches at 11 premises across Chennai, Coimbatore, and Kolkata in connection with the Hashpe cryptocurrency fraud case. The arrests of Hitesh Kumar and Imran Basha came after investigators uncovered a scheme that allegedly siphoned off approximately ₹40 crore from unsuspecting investors.
The money laundering investigation was initiated on the basis of a First Information Report registered by the Puducherry Cyber Crime Police. According to the ED, Hitesh Kumar, Imran Basha, and Syed Usman allegedly floated a fraudulent investment scheme operated under the guise of a cryptocurrency trading platform.
The agency revealed that the accused lured investors with promises of lucrative financial returns through a purported digital token named TCX. To bring in investors, the group orchestrated promotional events, secured celebrity endorsements, and carried out aggressive social media campaigns while artificially inflating the value of the TCX token.
After accumulating large sums of money from the public, the operators blocked withdrawals, preventing investors from recovering their funds. The ED stated that around ₹40 crore collected through the scheme was subsequently diverted through shell entities, as well as accounts belonging to associates and relatives.
The agency conducted searches across the 11 locations in Chennai, Coimbatore, and Kolkata on September 1, leading to the seizure of various digital devices and documents connected to the transactions. Following the searches, the ED arrested Basha and Kumar on September 3, and a special court remanded them to five days of ED custody for further interrogation.
The cryptocurrency raids were part of a wider enforcement action in which the ED searched a total of 17 premises across Chennai, Coimbatore, Kolkata, and Nagapattinam in two separate money laundering cases involving crypto fraud and drug trafficking, the agency said on Thursday.
Separately, the ED’s Madurai Sub-Zonal Office searched six premises in Nagapattinam on September 3 over alleged money laundering linked to meth and ganja trafficking. In that case, the agency stated that M Alex, a repeat offender, was intercepted by the Narcotics Control Bureau in April carrying methamphetamine.
Proceeds from the drug trafficking operations were allegedly invested in properties, shrimp farms, and vehicles across Nagapattinam, Velankanni, and Thaliyamadi. The Enforcement Directorate confirmed that digital devices and documents were seized in both cases.
