On Thursday, September 24, 2026, The Crypto Times reported that India’s Enforcement Directorate (ED) arrested two more suspects in its money-laundering probe into the alleged Hashpe cryptocurrency fraud, bringing the total number of arrests in the case to four.
The federal agency’s Chennai Zonal Office-II detained Syed Usman, also known as Babu, and Dhamodharan Balachandran on September 22 under Section 19 of the Prevention of Money Laundering Act, 2002. A Special PMLA Court subsequently remanded both men to three days of judicial custody, according to an official statement released by the ED on September 24.
The case originated from a first information report filed by the Puducherry Cyber Crime Police Station, invoking provisions of the Bharatiya Nyaya Sanhita, 2023, and the Information Technology Act, 2000.
Investigators allege that Usman, along with Imran Basha
Investigators allege that Usman, along with Imran Basha and other associates, ran an investment scheme marketed under the Hashpe name and presented as a cryptocurrency trading platform. According to the ED, participants were persuaded to invest in a token called TCX, with promised returns used as a lure. The agency said funds flowed in through a combination of bank transfers, cryptocurrency, and cash.
The ED’s investigation has so far traced three broad categories of alleged proceeds: roughly ₹16 crore collected in cash, about ₹10.52 crore deposited into a bank account tied to an entity called Hify Circle, and an estimated ₹120 crore represented through the purported TCX tokens. The agency cautioned that these figures stem from its ongoing investigation and have not been verified by a court.
Officials described differing roles for the two most recently arrested men. Usman is accused of managing large cash investments and overseeing the Hify Circle account allegedly used to receive investor money, while Balachandran is said to have built and run Hashpe’s technical infrastructure, including its database, software, and wallet systems.
The ED further alleges the men
The ED further alleges the men and their associates helped acquire, layer, and divert proceeds, with some funds allegedly redirected into personal accounts held by the accused, relatives, and connected entities.
As part of the broader inquiry, the agency is scrutinizing bank records, crypto wallets, and property holdings to track how funds moved after being collected, and whether any proceeds were converted into digital assets or real estate.
The ED also pointed to Hashpe’s promotional efforts, alleging the platform used a launch event and a car-giveaway ceremony involving Bollywood celebrities, along with referral commissions, social media campaigns, and a promotional gathering aboard a Mumbai cruise ship to draw in investors.
The latest detentions follow a search operation
The latest detentions follow a search operation the ED carried out on September 1 across 11 locations in Chennai, Coimbatore, and Kolkata. That raid led to the earlier arrests of Imran Basha and Hitesh Kumar on September 3.
The ED said its investigation remains active and stressed that the allegations against all four accused have not yet been established in court.
