ED Arrests Two in Rs.40 Cr Hashpe Crypto Fraud Case

The Enforcement Directorate (ED) conducted raids at 11 premises in Chennai, Coimbatore, and Kolkata in connection with the Hashpe cryptocurrency fraud case. The ED arrested Imran Basha and Hitesh Kumar, both from Coimbatore, on September 3 under Section 19 of the Prevention of Money Laundering Act (PMLA) 2002.

According to the ED investigation, Imran Basha, Syed Usman alias Babu, and Hitesh Kumar allegedly floated a fraudulent investment scheme called 'Hashpe', projecting it as a cryptocurrency trading platform. They claimed that investors could earn lucrative returns through trading in a purported cryptocurrency named TCX.

The accused organized lavish promotional events, engaged Bollywood celebrities, and conducted extensive social media campaigns to attract investors. The ED said the modus operandi involved artificially inflating the value of the Hashpe token to induce further investments.