ED arrests two in ₹40-crore HashPe cryptocurrency fraud

Image used for representation | Photo Credit: Getty Images The officers of the Directorate of Enforcement (ED), Chennai, conducted searches on 11 premises located in Chennai, Coimbatore, and Kolkata on September 1, 2026, in connection with a money laundering investigation related to a HashPe cryptocurrency fraud. They arrested two persons on charges of collecting approximately ₹40 crore and diverting it for money-laundering purposes. According to the ED, investigation was initiated on the basis of an FIR registered by the Cyber Crime Police, Puducherry, against unidentified persons in a case related to the HashPe cryptocurrency fraud. The agency claimed the investigation revealed that Hitesh Kumar, Imran Basha, and Syed Usman alias Babu, in connivance with their associates, had floated a fraudulent investment scheme under the name ‘HashPe’, projecting it as a cryptocurrency trading platform. Members of the public were dishonestly induced to invest their funds on the false promise of lucrative returns through trading in a purported cryptocurrency named ‘TCX’.Modus operandiThe modus operandi involved organising lavish promotional events, engaging Bollywood celebrities, and conducting extensive social-media campaigns to attract investors. The purported value of the HashPe token was artificially inflated to induce further investments. Subsequently, investor withdrawals were blocked, and the funds collected were diverted to bank accounts linked to shell entities, associates, and relatives of the accused. Consequently, investors were deprived of both their invested funds and the promised returns.Analysis of bank accounts revealed that through such activities, the accused persons had collected approximately ₹40 crore, which was further diverted and layered for money-laundering purposes. A substantial portion of the investors’ funds were allegedly diverted 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 proceeds of the crime were utilised to fund lavish lifestyles and to acquire immovable properties, the ED said. Searches resulted in seizure of incriminating documents and digital evidence relating to the offence of money laundering. Further, Imran Basha and Hitesh Kumar were also arrested under Section 19 of the PMLA, 2002, on Thursday (September 3) and produced before the Special Court, PMLA, which granted five days’ custody of both the accused persons.Further investigation is under progress. Published - September 05, 2026 12:21 pm IST