The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth approximately ₹14.16 crore in connection with an alleged cryptocurrency investment fraud operated through the HashPe platform. The action was taken on October 30, 2026, under the Prevention of Money Laundering Act (PMLA), 2002. The agency has also filed a prosecution complaint before the Special Court under the PMLA in Puducherry.
According to the ED, the scheme allegedly collected approximately ₹112.91 crore from investors by promising daily returns of 1%, potential returns of up to three times the original investment, referral commissions and rewards such as luxury cars and foreign trips. Investigators have identified approximately ₹49.54 crore as proceeds of crime. The case involves alleged fund diversion through bank accounts, cryptocurrency wallets and a multi-level marketing network.
ED Attaches ₹14.16 Crore in HashPe Cryptocurrency Fraud Case
The ED’s Chennai Zonal Office-II provisionally attached assets valued at approximately ₹14.16 crore belonging to individuals and entities allegedly connected to the HashPe investment scheme.
The attached assets include:
- Immovable properties located in Tamil Nadu, Haryana and New Delhi.
- A BMW car.
- Funds held in bank accounts.
The agency filed its prosecution complaint before the Special Court (PMLA) in Puducherry on October 30, 2026.
The investigation originated from a First Information Report (FIR) registered by the Cyber Crime Police Station in Puducherry under the Bharatiya Nyaya Sanhita (BNS), 2023, and the Information Technology Act, 2000.
The ED initiated its money-laundering investigation to examine how funds collected from investors were allegedly transferred, converted into cryptocurrency and used to acquire assets.
Importantly, the attachment is provisional. It does not mean that the attached properties have already been permanently confiscated. The legal process under the PMLA will determine the eventual status of these assets.
How the Alleged HashPe Ponzi Scheme Worked
According to the ED, M/s Pan India Crypto Currency, popularly known as HashPe, operated through the website hashpe.io and a multi-level marketing network.
The platform allegedly attracted investors with promises of unusually high returns and incentives for recruiting additional participants.
The scheme reportedly offered:
| Investment promise | Details |
|---|---|
| Daily returns | 1% |
| Maximum promised returns | Up to 3X the investment |
| Referral incentives | Commissions for bringing in new investors |
| Promotional rewards | Luxury cars and foreign trips |
| Investment methods | Cash, bank transfers and cryptocurrency |
The agency alleges that promoters and their associates used these promises to attract investments from members of the public.
Investors were encouraged to participate through cash payments, bank transfers and cryptocurrency transactions. The multi-level marketing structure also allowed agents, described as “Leaders”, to earn commissions by recruiting additional investors.
New investors’ money allegedly paid earlier participants
One of the central findings of the ED investigation concerns how the scheme allegedly handled investor payments.
According to the agency, HashPe did not generate the advertised returns through genuine cryptocurrency trading. Instead, money collected from new investors was allegedly used to pay earlier participants and commissions to agents.
This is a characteristic feature of a Ponzi-type arrangement, in which payments to earlier participants are funded primarily through money collected from subsequent investors rather than profits generated by legitimate business activity.
The ED alleges that the platform eventually stopped allowing withdrawals and was disabled, leaving numerous investors facing financial losses.
ED Identifies ₹49.54 Crore as Proceeds of Crime
The investigation found that approximately ₹112.91 crore was mobilised through the alleged scheme.
A portion of the collected money was reportedly returned to investors. The remaining funds were allegedly routed through bank accounts belonging to HIFY Circle and other associated individuals and entities before being moved through cryptocurrency wallets.
The agency has identified approximately ₹49.54 crore as proceeds of crime.
| Financial detail | Amount |
|---|---|
| Total funds allegedly mobilised | ₹112.91 crore |
| Proceeds of crime identified by ED | ₹49.54 crore |
| Assets provisionally attached | ₹14.16 crore |
These figures represent different stages of the investigation and should not be treated as interchangeable. The total amount allegedly collected, the estimated proceeds of crime and the value of provisionally attached assets are separate measures.
Where the money was allegedly diverted
The ED alleges that funds were diverted towards several purposes, including:
- Personal expenses of individuals associated with the scheme.
- Repayment of loans.
- Commissions paid to agents and intermediaries.
- Promotional campaigns and events.
- Acquisition of movable and immovable assets.
The agency is examining the movement of funds through financial accounts and cryptocurrency wallets to establish how the alleged proceeds were transferred and used.
Fake Cryptocurrency Tokens TCX and HashPe Allegedly Used
Another important aspect of the investigation involves the cryptocurrency tokens offered through the platform.
According to the ED, HashPe allegedly created fictitious digital tokens, including TCX and HashPe, at almost zero acquisition cost and assigned artificial values to them.
The platform reportedly displayed profits to investors despite the absence of genuine cryptocurrency trading activities capable of generating the promised returns.
This allegedly created the appearance of investment growth and encouraged participants to continue investing or recruit additional users.
The use of cryptocurrency also formed part of the alleged fund-transfer mechanism. Investigators are examining how funds were converted into digital assets and moved through different wallets and associated entities.
The agency’s findings are allegations arising from its investigation and remain subject to judicial proceedings.
Four People Arrested in the HashPe Investigation
The ED conducted search operations on September 1, 2026, at premises linked to HashPe, its promoters and associates.
Following the searches, the agency arrested four individuals under Section 19 of the PMLA:
| Accused | Reported role or connection |
|---|---|
| Imran Basha | Alleged promoter |
| Hitesh Kumar | Alleged promoter |
| Syed Usman alias Babu | Allegedly handled substantial cash investments and HIFY Circle’s bank account |
| Dhamodharan | Allegedly managed software, databases and cryptocurrency operations |
According to the ED, Dhamodharan was involved in managing the platform’s technical infrastructure, including its database and cryptocurrency wallet functions. Usman allegedly handled large cash investments and operated the HIFY Circle bank account.
All four accused were reported to be in judicial custody at the time of the agency’s announcement.
The prosecution complaint filed before the Puducherry PMLA court represents another stage in the investigation. The court proceedings will examine the allegations and evidence presented by the agency.
Why the HashPe Case Matters for India’s Cryptocurrency Sector
The case highlights the risks associated with cryptocurrency investment schemes that promise fixed or unusually high returns without providing verifiable information about how those returns are generated.
Cryptocurrency itself is not the same as a Ponzi scheme. Digital assets can be traded through legitimate platforms, but fraudsters may use cryptocurrency terminology, fictitious tokens and complex transaction structures to make investment schemes appear credible.
The HashPe investigation also illustrates how digital assets can complicate the tracing of funds when transactions involve multiple bank accounts, intermediaries and cryptocurrency wallets.
For investors, the case reinforces the importance of checking whether an investment platform provides transparent information about its business model, trading activity, custody arrangements and regulatory status.
Promises of guaranteed daily returns, unusually high multiples of invested capital and expensive referral rewards should be examined carefully, particularly when the underlying source of profits is unclear.
The Bigger Picture
The ED’s action against HashPe reflects the increasing scrutiny of cryptocurrency-linked financial fraud in India. The alleged scheme combined high-return promises, fictitious digital tokens, referral commissions and cryptocurrency transactions to attract investors and move funds. The attachment of ₹14.16 crore in assets is part of a wider investigation into the alleged collection of ₹112.91 crore and the identification of ₹49.54 crore as proceeds of crime.
The case also highlights the importance of financial transparency in digital asset businesses. As cryptocurrency adoption grows, investors need to distinguish legitimate trading and investment activities from schemes that rely on new participants’ money to pay earlier investors. Enforcement action can help trace suspected proceeds, but preventing losses also depends on investor awareness, transparent platforms and effective financial oversight.
Looking Ahead
The next stage of the HashPe case will involve proceedings before the Special Court under the PMLA in Puducherry. The ED will continue examining the alleged movement of funds, the role of the accused and the assets acquired using suspected proceeds. The provisional attachment will also remain subject to the legal process governing the identification and confiscation of proceeds of crime.
For investors affected by the alleged scheme, the key question will be whether investigators can trace additional funds and establish the extent of financial losses. The case could also draw attention to other cryptocurrency investment platforms using similar high-return and referral-based models. The final findings will depend on the evidence presented during the judicial proceedings.
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