ED arrests two in ₹40 crore Hashpe crypto fraud, raids 11 premises
Synopsis
The ED has cracked down on the Hashpe crypto fraud — a ₹40 crore scheme that used Bollywood celebrities and lavish events to lure investors into a fake token called TCX. With 11 premises raided and two key accused now in custody, the case exposes how sophisticated the playbook for crypto investment fraud in India has become.
Key Takeaways
The Enforcement Directorate arrested Imran Basha and Hitesh Kumar on 3 September under the PMLA, 2002 in the Hashpe cryptocurrency fraud case.
Raids were conducted at 11 premises across Chennai , Coimbatore , and Kolkata .
The accused allegedly collected around ₹40 crore from investors through a fake crypto token named 'TCX' .
Funds were diverted to shell entities , relatives, and personal accounts, and used to acquire immovable properties.
A Special Court (PMLA) granted five days' ED custody of both accused; a third accused, Syed Usman alias Babu , is yet to be arrested.
The probe was triggered by an FIR filed by the Puducherry Cyber Crime Police .
The Enforcement Directorate (ED) has arrested two key accused — Imran Basha and Hitesh Kumar — in connection with the Hashpe cryptocurrency fraud case, involving an alleged collection of ₹40 crore from investors through a sham digital-asset trading platform. The arrests were made on 3 September under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, and a Special Court subsequently remanded both accused to five days' ED custody.
Search Operations Across Three Cities
The ED's Chennai Zonal Office conducted simultaneous search operations at 11 premises spread across Chennai, Coimbatore, and Kolkata under the PMLA. During the searches, incriminating documents and digital evidence linked to money-laundering activities were seized. The probe was initiated on the basis of a First Information Report (FIR) registered by the Puducherry Cyber Crime Police against unidentified persons.
How the Hashpe Fraud Operated
According to the ED, Hitesh Kumar, Imran Basha, and Syed Usman alias Babu, along with associates, floated a fraudulent investment scheme under the name 'Hashpe'. The platform was presented to the public as a legitimate cryptocurrency trading venture, with investors lured through promises of high returns on a purported digital token called 'TCX'.
The modus operandi, the agency stated, involved organising lavish promotional events, engaging Bollywood celebrities, and running extensive social-media campaigns to attract investors. The value of the Hashpe token was reportedly artificially inflated to induce further participation. Once sufficient funds were collected, investor withdrawal requests were blocked and the money was diverted.
Where the Money Went
Analysis of bank accounts revealed that the accused funnelled the collected funds through shell entities, associates, and relatives to layer the proceeds for money-laundering purposes. A substantial portion was transferred directly to the personal accounts of Imran Basha and Hitesh Kumar, as well as to business entities linked to their family members. The proceeds of crime were used to fund lavish lifestyles and to acquire immovable properties, according to the ED.
Legal Status and Next Steps
Imran Basha and Hitesh Kumar were produced before the Special Court (PMLA), which granted the ED five days' remand custody of both accused. A third named individual, Syed Usman alias Babu, is yet to be arrested. The ED has stated that further investigation is ongoing. This case is part of a broader national pattern of cryptocurrency-linked fraud schemes that have drawn increasing regulatory scrutiny in recent years.
Point of View
Celebrity endorsements, social-media hype, and then a sudden withdrawal freeze. What makes it notable is the geographic spread: raids across Chennai, Coimbatore, and Kolkata point to a well-networked operation, not a localised scam. The use of shell entities and family accounts for layering suggests professional money-laundering structuring, not opportunistic fraud. With a third accused still at large and investigation ongoing, the full scale of the scheme — and the extent of celebrity liability, if any — remains to be established.
NationPress
5 Sept 2026
Frequently Asked Questions
What is the Hashpe cryptocurrency fraud case?
The Hashpe fraud was a fake cryptocurrency investment scheme in which accused persons allegedly collected around ₹40 crore from the public by promising high returns on a purported digital token called 'TCX'. Investor withdrawals were subsequently blocked and the funds were diverted through shell entities and personal accounts.
Who has been arrested in the Hashpe crypto fraud?
The ED arrested Imran Basha and Hitesh Kumar on 3 September under Section 19 of the PMLA, 2002. A third accused, Syed Usman alias Babu, has been named in the investigation but is yet to be arrested.
What was the modus operandi of the Hashpe scheme?
The accused organised lavish promotional events, engaged Bollywood celebrities, and ran social-media campaigns to attract investors. The value of the Hashpe token was artificially inflated, and once funds were collected, withdrawals were blocked and money was siphoned off.
How much money was allegedly collected in the Hashpe fraud?
According to the ED, the accused collected approximately ₹40 crore through the fraudulent scheme. The funds were further layered through shell companies, associates, and family members' accounts, and used to acquire properties and fund lavish lifestyles.
What is the current legal status of the accused?
Both Imran Basha and Hitesh Kumar were produced before a Special Court (PMLA), which granted the ED five days' remand custody. Investigation is ongoing, and the ED has indicated further action is expected.
