ED arrests two more in Hashpe crypto fraud probe in Chennai
Synopsis
The Enforcement Directorate has now arrested four individuals in the Hashpe cryptocurrency fraud probe, with the latest two — Syed Usman and Dhamodharan Balachandran — remanded to judicial custody on 22 September. The alleged scheme lured investors with promises of returns via a token called TCX, and the money trail now spans Chennai, Coimbatore, and Kolkata.
Key Takeaways
The ED arrested Syed Usman (alias Babu) and Dhamodharan Balachandran on 22 September under Section 19 of PMLA, 2002 .
A special PMLA court remanded both to three days' judicial custody .
Earlier arrests: Hitesh Kumar and Imran Basha were detained on 3 September after searches of 11 premises in Chennai, Coimbatore, and Kolkata on 1 September .
Hashpe was allegedly promoted as a cryptocurrency trading platform offering returns via a token called TCX .
The ED probe stems from a fraud case originally examined by the Puducherry Cyber Crime Police .
Balachandran's specific alleged role has not yet been detailed publicly by the agency.
The Enforcement Directorate (ED) has arrested Syed Usman (also known as Babu) and Dhamodharan Balachandran in connection with its money laundering probe into the alleged Hashpe cryptocurrency fraud, the agency confirmed. Both were taken into custody on 22 September under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, and produced before a special PMLA court, which remanded them to three days' judicial custody.
Background to the Arrests
The latest detentions come weeks after the ED's Chennai Zonal Office-II conducted searches across 11 premises in Chennai, Coimbatore, and Kolkata on 1 September. Those searches were aimed at tracing how funds collected through Hashpe were routed and handled. Following that operation, the agency arrested Hitesh Kumar and Imran Basha on 3 September. The four arrests together mark a widening sweep of the investigation.
What Hashpe Allegedly Did
According to the ED's account of its earlier searches, Hitesh Kumar, Imran Basha, and Syed Usman, along with associates, allegedly promoted Hashpe as a cryptocurrency trading platform. Investors were reportedly lured with promises of attractive returns through a purported token called TCX. Investigators are now examining how those investor funds were moved and whether the transactions constitute money laundering under PMLA.
Scope of the Investigation
The ED's probe follows allegations of fraud first examined by the Puducherry Cyber Crime Police. The central agency's case focuses on the alleged handling of proceeds from that underlying offence — specifically, whether funds obtained through the investment scheme were diverted. Notably, the ED has not yet publicly detailed Balachandran's specific alleged role in the scheme, and the agency's remand application is expected to shed more light as court proceedings continue.
What Happens Next
The three-day judicial remand allows the special PMLA court to oversee proceedings while investigators continue to follow the money trail. Further arrests or asset attachments cannot be ruled out as the probe expands. The case is being closely watched as part of a broader pattern of regulatory action against alleged cryptocurrency fraud schemes in South India.
Point of View
And the Puducherry Cyber Crime angle means jurisdictional coordination will be tested. With the money trail stretching across three cities and a TCX token whose legitimacy is still being scrutinised, the real measure of this probe will be asset attachment, not just arrests.
NationPress
24 Sept 2026
Frequently Asked Questions
Who has the ED arrested in the Hashpe cryptocurrency fraud case?
The ED has so far arrested four individuals — Hitesh Kumar, Imran Basha, Syed Usman (alias Babu), and Dhamodharan Balachandran. The latest two were arrested on 22 September under Section 19 of PMLA, 2002, and remanded to three days' judicial custody.
What is the Hashpe cryptocurrency fraud?
Hashpe was allegedly promoted as a cryptocurrency trading platform that offered investors attractive returns through a token called TCX. Investigators allege that funds collected from investors were diverted, and the case is being probed as money laundering under PMLA. The underlying fraud was first examined by the Puducherry Cyber Crime Police.
What action did the ED take before these arrests?
On 1 September, the ED's Chennai Zonal Office-II searched 11 premises across Chennai, Coimbatore, and Kolkata to trace how funds collected through Hashpe were handled. Two days later, on 3 September, Hitesh Kumar and Imran Basha were arrested in connection with the same probe.
What happens after the three-day judicial remand?
Following the remand period, the special PMLA court will determine the next steps, which could include extension of custody or bail proceedings. The ED is expected to continue pursuing the money trail, and further arrests or asset attachments remain possible.
Why is the Puducherry Cyber Crime Police relevant to the ED's case?
The ED's money laundering investigation is predicated on the fraud allegations first examined by the Puducherry Cyber Crime Police. Under PMLA, the ED can investigate the financial trail of proceeds from a scheduled offence — in this case, the alleged investment fraud reported to state police.
