NEW DELHI: The Enforcement Directorate (ED) has arrested two more accused in connection with Rs 146 crore cryptocurrency investment fraud linked to the Hashpe platform, widening its money-laundering investigation into a scheme that allegedly lured investors with promises of lucrative returns through a purported digital currency called “TCX”.
The ED’s Chennai Zonal Office-II arrested Syed Usman alias Babu and Dhamodharan Balachandran on September 22, 2026, under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. Both were subsequently produced before the Special Court, PMLA, which granted three days of judicial custody, according to the agency.
ED, Chennai, arrested Syed Usman alias Babu and Dhamodharan Balachandran on 22.09.2026 under Section 19 of the PMLA), 2002, in connection with money-laundering investigation into the Hashpe cryptocurrency fraud case. Both the accused produced before the Hon’ble Special Court,… pic.twitter.com/KQrAAtICbz
— ED (@dir_ed) September 24, 2026
The latest arrests come after the ED’s earlier action against Imran Basha and Hitesh Kumar, who were arrested following searches at 11 premises across Chennai, Coimbatore and Kolkata on September 1. The agency’s investigation is based on an FIR registered by the Cyber Crime Police Station, Puducherry, under provisions of the Bharatiya Nyaya Sanhita and the Information Technology Act.
How the Hashpe investment scheme worked
According to the ED, Syed Usman, Imran Basha and their associates allegedly floated Hashpe as a cryptocurrency trading platform and promoted a purported cryptocurrency called “TCX”. Investors were allegedly promised attractive returns and were encouraged to put money into the scheme through bank transfers, cryptocurrency and cash.
The agency alleged that the operators adopted multiple methods to make the platform appear credible and attract investors. These included a launch event and an awards ceremony featuring Bollywood celebrities, referral commissions, social-media promotions and an event organised aboard a cruise ship in Mumbai.
The ED said its investigation has so far revealed that approximately Rs 146 crore was collected from investors through three major channels. The agency has outlined the alleged collection mechanism in its case material.
ED traces money trail
The agency’s investigation has also focused on the alleged movement and layering of the proceeds generated through the scheme.
According to the ED, Syed Usman allegedly handled substantial cash investments and was involved in operating a bank account in the name of “Hufy Circle”, which was allegedly used to receive funds from investors.
ED, Chennai, arrested Syed Usman alias Babu and Dhamodharan Balachandran on 22.09.2026 under Section 19 of the PMLA), 2002, in connection with money-laundering investigation into the Hashpe cryptocurrency fraud case. Both the accused produced before the Hon’ble Special Court,… pic.twitter.com/KQrAAtICbz
— ED (@dir_ed) September 24, 2026
The agency further alleged that Dhamodharan played a key role in developing and managing the Hashpe software, database and cryptocurrency-related operations, including functions associated with the platform’s wallets.
The ED alleged that proceeds of crime were subsequently diverted to the personal bank accounts of Usman, Dhamodharan, their family members and entities linked to them. The agency further said that part of the alleged proceeds was invested in cryptocurrency and immovable properties.
These allegations form part of the ongoing ED investigation and will be tested through the judicial process.
Earlier searches and arrests
The latest arrests follow an extensive search operation conducted by the ED on September 1, when agency teams searched 11 premises in Chennai, Coimbatore and Kolkata as part of the Hashpe money-laundering investigation.
During the course of that investigation, the ED arrested Imran Basha and Hitesh Kumar, who are currently in judicial custody.
The agency has said that its investigation into the alleged cryptocurrency investment fraud and the tracing of the suspected proceeds of crime remains ongoing. Further action could follow as investigators examine the financial transactions, cryptocurrency movements, properties and entities allegedly connected to the scheme.
