ED Arrests Two in Rs 146 Crore Money Laundering Case Linked to Hashpe Cryptocurrency Fraud

The Enforcement Directorate (ED) has arrested two individuals in connection with an alleged Rs 146 crore money laundering investigation into the Hashpe cryptocurrency fraud case.

Syed Usman, alias Babu, and Dhamodharan Balachandran were taken into custody by ED's Chennai Zonal Office, II on September 22 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.

The accused are alleged to have floated an investment scheme called 'Hashpe', projecting it as a cryptocurrency trading platform, and induced investors into investing through bank transfers, cryptocurrency, and cash by promising lucrative returns through a purported cryptocurrency named 'TCX'. Investors were allegedly lured with events such as a launch event, car award ceremony featuring Bollywood celebrities, referral commissions, social-media promotion, and an event on a cruise ship in Mumbai.