ED arrests two in ₹40-crore HashPe cryptocurrency fraud
The Enforcement Directorate has arrested two individuals linked to the 'HashPe' cryptocurrency fraud, which allegedly swindled investors out of ₹40 crore. The scheme used celebrity endorsements and social media to lure victims into a fake trading platform.
Why it matters
This case highlights the rising prevalence of financial fraud within the unregulated cryptocurrency sector in India.
The officers of the Directorate of Enforcement (ED), Chennai, conducted searches on 11 premises located in Chennai, Coimbatore, and Kolkata on September 1, 2026, in connection with a money laundering investigation related to ‘HashPe Cryptocurrency Fraud Case’. They arrested two persons on charges of collecting ₹40 crore (approximately) and diverting it for money-laundering purposes.
According to the ED, investigation was initiated on the basis of an FIR registered by the Cyber Crime Police, Puducherry, against unidentified persons in a case related to the HashPe Cryptocurrency Fraud. The agency claimed the investigation revealed that Hitesh Kumar, Imran Basha, and Syed Usman alias Babu, in connivance with their associates, had floated a fraudulent investment scheme under the name “HashPe”, projecting it as a cryptocurrency trading platform. Members of the public were dishonestly induced to invest their funds on the false promise of lucrative returns through trading in a purported cryptocurrency named “TCX”.
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