The Enforcement Directorate (ED) conducted searches at 11 premises in Chennai, Coimbatore and Kolkata in connection with the Hashpe cryptocurrency fraud and money laundering case and arrested two Coimbatore-based men, Imran Basha and Hitesh Kumar, on September 3. The ED said the case involves an alleged fraudulent cryptocurrency investment scheme in which approximately Rs.40 crore was collected from investors.
The Enforcement Directorate (ED), Chennai Zonal Office-II, conducted search operations under the Prevention of Money Laundering Act (PMLA), 2002, at 11 premises in Chennai, Coimbatore and Kolkata on September 1, 2026, in connection with a money laundering investigation into the ‘Hashpe’ cryptocurrency fraud case.
The ED said in a release dated September 4 that the searches resulted in the seizure of various incriminating documents and digital evidence relating to the offence of money laundering.
Imran Basha and Hitesh Kumar, both from Coimbatore, were arrested under Section 19 of the PMLA, 2002, on September 3, 2026. They were produced before the Special Court, PMLA, which granted five days of ED custody to both accused.
The ED launched the probe on the basis of an FIR registered by the Cybercrime Police, Puducherry, against unidentified persons in connection with a case related to Hashpe cryptocurrency fraud.
According to the ED investigation, Imran Basha, Syed Usman alias Babu and Hitesh Kumar, in connivance with their associates, allegedly floated a fraudulent investment scheme under the name ‘Hashpe’, projecting it as a cryptocurrency trading platform.
The ED said members of the public were allegedly induced to invest their funds on the promise of lucrative returns through trading in a purported cryptocurrency named ‘TCX’.
According to the agency, the 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 allegedly artificially inflated to induce further investments.
The ED said investor withdrawals were subsequently blocked, while the funds collected were diverted to bank accounts linked to shell entities, associates and relatives of the accused.
“As a consequence”, investors were deprived of both their invested funds and the promised returns, the agency said.
Analysis of bank accounts showed that the accused had allegedly collected approximately Rs. 40 crore through such activities, which was subsequently divided and layered for money laundering purposes, according to the ED.
The agency said a substantial portion of the investors’ funds was allegedly diverted to the personal accounts of Imran Basha and Hitesh Kumar, as well as to business entities associated with them and their family members.
The proceeds of crime were allegedly used to fund a lavish lifestyle and acquire immovable properties, the ED said.
The agency said its investigation had established the roles of Imran Basha and Hitesh Kumar as key accused in the money laundering activities connected with the Hashpe fraud.
