India's ED Attaches Rs. 14.16 Crore in Hashpe Crypto Fraud Case

India's Enforcement Directorate has provisionally attached assets worth approximately Rs. 14.16 crore, roughly $1.7 million, in the Pan India Crypto Currency case, known as the Hashpe case, according to the agency's Nov. 3 announcement. The attachment, filed Oct. 30 under the Prevention of Money Laundering Act, covers real estate in Tamil Nadu, Haryana and New Delhi, a BMW vehicle and bank balances. The ED also filed a prosecution complaint, moving the matter toward trial.

The agency puts the total collected through the scheme at about Rs. 112.91 crore, or roughly $13.5 million. Of that, investigators identified approximately Rs. 49.54 crore — close to $6 million — as proceeds of crime. The gap between the two figures reflects, in part, funds the ED says were returned to investors earlier in the scheme's life. Returns to early participants are a hallmark of the structure the agency alleges: money from new investors paid out to earlier ones.

What does the ED allege Hashpe promised?

According to the agency, Hashpe's promoters attracted deposits with guarantees of 1% daily returns and payouts of up to three times the invested amount. A 1% daily return compounds to more than 3,600% per year — a rate no licensed financial product in India offers. The pitch also included referral commissions and rewards such as luxury cars and foreign trips for recruiters.

The platform issued tokens named TCX and Hashpe, which the ED describes as fictitious. Profit figures displayed to investors, the agency says, had no corresponding trading activity behind them. The complaint does not state which blockchain, if any, hosted these tokens; that detail remains unspecified. Agents who recruited participants, called "Leaders," earned commissions from incoming funds.

The scheme's end followed a familiar pattern. The ED says withdrawals were later blocked and the platform was disabled, leaving investors with losses.

Who has been arrested?

Four accused — Imran Basha, Hitesh Kumar, Syed Usman, also known as Babu, and Dhamodharan Balachandran — have been arrested under the PMLA and remain in judicial custody. The ED says its investigation is continuing, which typically means further attachments or additional accused cannot be ruled out.

What happens next?

A provisional attachment under PMLA is not final. The accused can contest it before the Adjudicating Authority, and the ED must sustain its proceeds-of-crime finding for the seizure to hold. The prosecution complaint now before the court will determine whether the four face trial on money-laundering charges. For the investors who lost funds, the attached assets represent the recoverable pool so far — Rs. 14.16 crore against Rs. 49.54 crore the agency traces to the scheme, meaning full recovery, on current figures, is not possible.