ED Arrests Key Figures in Hashpe Cryptocurrency Fraud Case

The Directorate of Enforcement (ED) has arrested Syed Usman, also known as Babu, and Dhamodharan Balachandran in connection with a cryptocurrency fraud case. The investigation is related to the Hashpe scheme, which promised substantial returns through a supposed cryptocurrency called TCX.

The accused used various methods to lure investors, including referral commissions, social media promotions, and an event on a cruise ship in Mumbai. They obtained around Rs 146 crore from investors, with Rs 16 crore received in cash, Rs 10.52 crore credited to a bank account under the name of Hify Circle, and Rs 120 crore in the form of TCX coins.

The funds were then channelled into private bank accounts, cryptocurrency, and property. The ED carried out searches at 11 locations in Chennai, Coimbatore, and Kolkata on September 1, 2026. Further investigation is ongoing.