ED Arrests Two More in ₹146 Crore Hashpe Crypto Scam

The Enforcement Directorate (ED) has arrested two more individuals in connection with the ₹146 crore Hashpe cryptocurrency scam. Syed Usman, also known as Babu, and Dhamodharan Balachandran were detained on September 22 under Section 19 of the Prevention of Money Laundering Act, 2002.

The accused allegedly set up Hashpe as a cryptocurrency trading platform, promising high returns through a token called TCX. To build trust, they hosted a launch event and car award ceremony featuring Bollywood celebrities, offered referral commissions and social media promotion, and even organized an event on a cruise ship in Mumbai.

Investors were promised high returns through the TCX token, but the ED alleges that about ₹146 crore was collected from investors through three channels: ₹120 crore in the form of TCX coins, ₹16 crore in cash, and ₹10.52 crore credited to a bank account held in the name of Hify Circle.

The agency alleges that Syed Usman handled large cash investments and operated the Hify Circle account used to receive investor money, while Dhamodharan developed and managed Hashpe's software, database, and crypto operations, including its wallet functions. Funds were moved into personal bank accounts of the accused, their family members, and linked entities, with part of it being invested in cryptocurrency and immovable property.

Material released by the agency points to spending on cars awarded to selected investors, celebrity appearances, cruise and public events, gold gifts, and luxury personal expenses. Imran Basha and Hitesh Kumar, arrested earlier in the case, remain in judicial custody.