In a major crackdown on a massive cryptocurrency investment scam worth around 40 crore rupees, the Enforcement Directorate has taken decisive legal action. Investigating the high-profile money laundering case, the agency executed simultaneous search operations across 11 locations spanning Chennai, Coimbatore, and Kolkata. Following these coordinated raids, two prime accused individuals, Imran Basha and Hitesh Kumar, were placed under arrest.
Investigation triggered by Puducherry police
The Chennai Zonal Office-2 of the Enforcement Directorate initiated search operations under the Prevention of Money Laundering Act on September 1, 2026. The probe originated from an initial First Information Report registered by the Puducherry Cyber Crime Police, prompting the central agency to launch a comprehensive money laundering investigation. Initial findings revealed that Hitesh Kumar, Imran Basha, and Syed Usman alias Babu, along with other associates, had orchestrated a fraudulent investment scheme under the name Hapshe.
The deceptive trading platform and TCX coin
Under the criminal conspiracy, victims were falsely persuaded that Hapshe functioned as a legitimate cryptocurrency trading platform where investments in a digital currency named TCX would yield exceptionally high returns. To attract a massive pool of unsuspecting investors, the conspirators deployed aggressive advertising campaigns. According to the agency, multiple promotional events were organized, and Bollywood celebrities were roped into the advertising campaigns to lend a false sense of legitimacy to the fraudulent operation.
Social media marketing and artificial price inflation
Extensive marketing blitzes were also executed across various social media platforms to capture public attention. Investigators discovered that to continuously win the trust of investors, the market price of the Hapshe token was deliberately and artificially inflated. Seeing the climbing token values, participants believed their investments were multiplying rapidly, which drove numerous individuals to inject even larger sums of money into the scheme.
The fraudulent operation unraveled when investors attempted to withdraw their accumulated funds, at which point the platform abruptly blocked all withdrawal requests. The agency uncovered that funds collected from investors were systematically siphoned off through shell companies and transferred into bank accounts belonging to the accused individuals, their close associates, and family members.
Extravagant lifestyles and subsequent arrests
An audit of the bank accounts indicated that approximately 40 crore rupees were amassed through this elaborate deception, which was subsequently laundered by rotating the money through multiple layered accounts. Investigations established that a substantial portion of the defrauded funds directly entered the personal accounts, business entities, and family-linked institutions of Imran Basha and Hitesh Kumar. The accused allegedly spent the ill-gotten wealth on luxurious lifestyles and acquiring fresh properties. Following the seizure of crucial documents and digital evidence during the raids, both suspects were arrested on September 3 and subsequently remanded to five days of agency custody by a special court.
