ED Files Prosecution Complaint In Puducherry Cryptocurrency Fraud Case, Attaches Rs 14.16 Cr Assets

(MENAFN- IANS) Chennai, Nov 3 (IANS) The Enforcement Directorate (ED) has filed a prosecution complaint before the Special Prevention of Money Laundering Act (PMLA) Court in Puducherry in connection with an alleged cryptocurrency investment fraud involving M/s Pan India Crypto Currency, popularly known as Hashpe, and provisionally attached assets worth Rs 14.16 crore.

The attached assets include immovable properties in Tamil Nadu, Haryana and New Delhi, besides BMW cars and balances held in bank accounts, the ED's Chennai Zonal Office-II said in a statement on Tuesday.

The investigation uncovered an alleged fraudulent investment scheme that collected approximately Rs 112.91 crore from investors by promising unusually high returns, luxury cars, foreign tours and lucrative referral commissions.

According to the ED, the scheme operated through the website“hashpe” and a multi-level marketing network managed by Imran Basha, Hitesh Kumar, Syed Usman alias Babu, Dhamodharan and their associates. Investors were promised daily returns of one per cent and potential earnings of up to three times their original investment.

The promoters encouraged investments through cash payments, bank transfers and cryptocurrency assets.

The platform offered fictitious cryptocurrency tokens, including TCX and Hashpe, while displaying profits without undertaking genuine trading activities, the agency alleged.

Investigators found that money collected from new investors was used to pay earlier investors and commissions to agents designated as“Leaders”, indicating a Ponzi-type operation.

The scheme eventually collapsed after withdrawals were blocked and the investment platform was disabled, leaving numerous investors facing substantial financial losses. Of the Rs 112.91 crore allegedly mobilised, only a portion was returned to investors.

The remaining funds were routed through bank accounts belonging to M/s HIFY Circle, associated individuals and entities, and cryptocurrency wallets.

The ED alleged that substantial amounts were diverted towards personal expenditure, repayment of loans, commissions, promotional activities and acquisition of assets. The agency has identified approximately Rs 49.54 crore as proceeds of crime during its investigation.

The money-laundering investigation originated from an FIR registered by the Cyber Crime Police Station in Puducherry under the provisions of the Bharatiya Nyaya Sanhita and the Information Technology Act.

The ED had earlier conducted searches at premises linked to Hashpe and its promoters on September 1, 2026, as part of its investigation into the alleged fraud.

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