ED Cracks Down on Crypto Scam and Narcotics Trafficking
The Enforcement Directorate (ED) conducted searches on 17 premises in Chennai, Coimbatore, Kolkata, and Nagapattinam as part of two separate money laundering cases.
The first case involves a cryptocurrency fraud, where the ED's Chennai Zonal Office-II searched 11 premises across three cities. The probe found that Hitesh Kumar, Imran Basha, and Syed Usman allegedly floated a fraudulent investment scheme under the guise of a cryptocurrency trading platform called Hashpe.
The scammers used promotional events, celebrity endorsements, and social media campaigns to attract investors, who were promised lucrative returns through a token called TCX. However, withdrawals were later blocked, and around ₹40 crore was allegedly collected from investors, which was diverted through shell entities, associates, and relatives.
Basha and Kumar were arrested on September 3, and a special court granted five days' custody. Separately, the ED's Madurai Sub-Zonal Office searched six premises in Nagapattinam over alleged money laundering linked to meth and ganja trafficking.
The agency said M Alex, a repeat offender, was intercepted by the NCB in April 2025 carrying methamphetamine. Drug proceeds were allegedly invested in properties, shrimp farms, and vehicles in Nagapattinam, Velankanni, and Thaliyamadi.