3 hrs ago
ED arrests two in Rs 40 crore Hashpe fraud case
The Enforcement Directorate investigated a company called Hashpe.
It said Hashpe promised people large profits from a cryptocurrency called TCX.
The agency alleged that investors were attracted through events, celebrities and social-media advertising.
It said the value of the token was made to look higher than it was.
Later, investors could not withdraw their money.
Investigators said about Rs 40 crore was collected and moved through different bank accounts.
Two people, Imran Basha and Hitesh Kumar, were arrested on September 3.
A court allowed investigators to keep them in custody for five days while the investigation continues.
The Enforcement Directorate searched 11 premises in Chennai, Coimbatore and Kolkata under the Prevention of Money Laundering Act.
The searches involved an investigation into the Hashpe cryptocurrency fraud case, based on a Puducherry Cyber Crime Police FIR.
The ED alleged that investors were lured into buying a purported cryptocurrency called TCX with promises of lucrative returns.
Investigators said about Rs 40 crore was collected, then diverted through shell entities, associates and relatives.
Imran Basha and Hitesh Kumar were arrested on September 3 and remanded to five days of custody by a PMLA court.
- Who
- The Enforcement Directorate arrested Imran Basha and Hitesh Kumar; the agency also named Hitesh Kumar, Imran Basha and Syed Usman alias Babu in its investigation.
- What
- The ED conducted searches and investigated alleged money laundering linked to the Hashpe cryptocurrency investment fraud.
- Where
- Searches were conducted at 11 premises in Chennai, Coimbatore and Kolkata, following an FIR filed by Puducherry Cyber Crime Police.
- When
- The arrests took place on September 3; the ED announced the searches in a Friday press statement.
- Why
- The ED alleged that around Rs 40 crore collected from investors was diverted and layered through accounts linked to shell entities, associates and relatives.
Key facts
- Agency
- Enforcement Directorate, Chennai Zonal Office
- Law invoked
- Prevention of Money Laundering Act, 2002
- Case
- Hashpe cryptocurrency fraud investigation
- Purported cryptocurrency
- TCX
- Amount collected
- Around Rs 40 crore
- Searches
- 11 premises in Chennai, Coimbatore and Kolkata
- Court action
- Five days of custody granted for both arrested accused
Sources
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