ED files PMLA case in Puducherry crypto fraud, attaches ₹14.16 cr assets
Synopsis
The ED has filed a PMLA prosecution complaint in Puducherry against Hashpe — a crypto platform that allegedly collected ₹112.91 crore from investors with promises of daily 1% returns and luxury perks, then collapsed. With ₹49.54 crore identified as proceeds of crime and ₹14.16 crore in assets attached, this is one of the larger crypto Ponzi cases to reach a formal PMLA trial stage in south India.
Key Takeaways
The Enforcement Directorate has filed a PMLA prosecution complaint before a special court in Puducherry against Hashpe (M/s Pan India Crypto Currency).
Assets worth ₹14.16 crore — including properties in Tamil Nadu , Haryana , New Delhi , BMW cars, and bank balances — have been provisionally attached.
The scheme allegedly collected approximately ₹112.91 crore from investors by promising daily returns of 1% and up to 3x the original investment.
The ED identified approximately ₹49.54 crore as proceeds of crime; the platform used fictitious tokens TCX and Hashpe without conducting genuine trading.
The probe stems from an FIR filed by the Cyber Crime Police Station, Puducherry ; searches at Hashpe premises were conducted on 1 September 2026 .
The Enforcement Directorate (ED) has filed a prosecution complaint before the Special Prevention of Money Laundering Act (PMLA) Court in Puducherry in connection with an alleged cryptocurrency investment fraud perpetrated by M/s Pan India Crypto Currency, commonly known as Hashpe. The agency has provisionally attached assets worth ₹14.16 crore linked to the accused promoters and their associates.
What Was Attached
The attached assets, confirmed by the ED's Chennai Zonal Office-II in a statement on Tuesday, 3 November 2026, include immovable properties located in Tamil Nadu, Haryana, and New Delhi, along with BMW cars and balances held in bank accounts. The breadth of the attachment — spanning three states and luxury vehicles — signals that proceeds were rapidly dispersed across the country.
How the Alleged Fraud Operated
Investigators found that the scheme collected approximately ₹112.91 crore from investors by promising unusually high returns, luxury cars, foreign tours, and referral commissions. The platform operated through the website 'hashpe.io' and a multi-level marketing network allegedly managed by Imran Basha, Hitesh Kumar, Syed Usman alias Babu, Dhamodharan, and their associates.
Investors were reportedly promised daily returns of one per cent and potential earnings of up to three times their original investment. The platform offered fictitious cryptocurrency tokens — TCX and Hashpe — while displaying profits without undertaking any genuine trading activity, according to the ED.
Ponzi-Type Structure Alleged
According to investigators, money collected from new investors was used to pay earlier investors and to disburse commissions to agents designated as 'Leaders' — a structure consistent with a Ponzi-type operation. The scheme eventually collapsed after withdrawals were blocked and the investment platform was disabled, leaving a large number of investors facing substantial financial losses.
Of the ₹112.91 crore allegedly mobilised, only a portion was returned to investors. The remaining funds were routed through bank accounts of M/s HIFY Circle, associated individuals and entities, and cryptocurrency wallets. The ED has identified approximately ₹49.54 crore as proceeds of crime during its investigation.
Background and Searches
The money-laundering investigation originated from a First Information Report registered by the Cyber Crime Police Station in Puducherry under the Bharatiya Nyaya Sanhita and the Information Technology Act. The ED had earlier conducted searches at premises linked to Hashpe and its promoters on 1 September 2026, which formed the basis for the subsequent asset attachment and the current prosecution complaint.
This case adds to a growing list of cryptocurrency investment frauds that enforcement agencies have been scrutinising across India, as regulators and investigative bodies tighten oversight of unregistered digital asset platforms. With the prosecution complaint now filed, the case moves into formal PMLA trial proceedings.
Point of View
Multi-level marketing dressed up as 'Leaders', daily return promises, and a collapse the moment withdrawals were sought. What is notable is that of ₹112.91 crore allegedly collected, the ED has so far identified only ₹49.54 crore as proceeds of crime and attached just ₹14.16 crore — meaning a significant portion may already be beyond easy recovery. India's enforcement framework is catching up to crypto fraud, but the gap between funds mobilised and assets recovered remains a structural weakness. For the many investors who lost money, the PMLA trial is a necessary step, but freezing assets post-collapse rarely makes victims whole.
NationPress
3 Nov 2026
Frequently Asked Questions
What is the Hashpe cryptocurrency fraud case?
Hashpe, operating as M/s Pan India Crypto Currency, allegedly ran a fraudulent investment scheme that collected approximately ₹112.91 crore from investors across India by promising daily returns of 1% and earnings up to three times the original investment. The platform offered fictitious tokens and had no genuine trading activity; it eventually collapsed after blocking withdrawals, leaving investors with heavy losses.
What assets has the ED attached in this case?
The ED has provisionally attached assets worth ₹14.16 crore, including immovable properties in Tamil Nadu, Haryana, and New Delhi, BMW cars, and bank account balances linked to the accused promoters and their associates.
Who are the accused persons named in the Hashpe fraud?
The ED's investigation names Imran Basha, Hitesh Kumar, Syed Usman alias Babu, and Dhamodharan as the key promoters who managed the multi-level marketing network behind Hashpe.
What is the current legal stage of the Hashpe case?
The ED has filed a prosecution complaint before the Special PMLA Court in Puducherry. This moves the case into formal trial proceedings under the Prevention of Money Laundering Act, following earlier searches conducted on 1 September 2026.
How much of the alleged fraud proceeds has the ED identified?
The ED has identified approximately ₹49.54 crore as proceeds of crime out of the ₹112.91 crore allegedly collected. Funds were routed through bank accounts of M/s HIFY Circle, associated entities, and cryptocurrency wallets, and were allegedly diverted to personal expenses, loans, commissions, and asset acquisition.
