ED Cracks Down on HashPe Cryptocurrency Scam: Two Arrested, ₹40 Crore Traced

India's Enforcement Directorate (ED) has arrested two individuals in connection with an alleged ₹40-crore cryptocurrency investment fraud. The scam, operated under the name 'HashPe', targeted investors with promises of lucrative returns through trading in a purported cryptocurrency called 'TCX'.

The ED alleged that Hitesh Kumar, Imran Basha, and Syed Usman alias Babu, along with their associates, floated a fraudulent investment scheme. They used lavish promotional events, Bollywood celebrities, and extensive social media campaigns to attract investors.

An analysis of bank accounts showed that approximately ₹40 crore had been collected through the alleged scheme. The agency claimed that investor withdrawals were blocked, and the collected money was diverted to bank accounts linked to shell entities, associates, and relatives of the accused.

Imran Basha and Hitesh Kumar were arrested on September 3 under Section 19 of the Prevention of Money Laundering Act, 2002. They were subsequently produced before the Special Court under the PMLA, which granted five days' custody of both accused.