Hashpay, a cryptocurrency-based investment platform, is under the Enforcement Directorate's scanner for allegedly running a fraudulent investment scheme that promised investors daily returns of 1%, up to three times their investment, referral commissions, and rewards such as luxury cars and foreign trips.
The agency has provisionally attached assets worth Rs 14.16 crore in connection with the case and identified Rs 49.54 crore as proceeds of crime. The investigation relates to alleged financial fraud carried out through a website and a multi-level marketing network. The ED has also filed a prosecution complaint before the Special Court under the Prevention of Money Laundering Act in Puducherry.
What Was The Hashpay Investment Scheme?
According to the ED, Hashpay was operated through a website, hashpe.io, and a multi-level marketing network. Its promoters, Imran Basha, Hitesh Kumar, and Syed Usman alias Babu, allegedly worked with Dhamodaran and other associates to collect investments from the public.
Investors could put money into the platform through cash payments, bank transfers and cryptocurrency transactions. The platform offered cryptocurrencies, including TCX and Hashpay, which the ED described as fictitious.
The agency alleged that profits were displayed on the platform without any actual trading activity. The scheme attracted investors with promises of daily returns of 1%, returns of up to three times the original investment, referral commissions, and incentives such as luxury cars and foreign holidays.
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How Did The Alleged Fraud Work?
The ED investigation found that money collected from new investors was allegedly used to pay earlier investors and provide commissions to agents called "leaders". This meant that payouts depended on fresh investments rather than genuine trading profits.
The agency said withdrawals were subsequently restricted, and the platform was made inactive, leaving investors with losses.
Approximately Rs 112.91 crore was collected through the scheme, of which a portion was returned to investors. The remaining money was allegedly transferred to bank accounts of HIFY Circle and other related entities and individuals, as well as cryptocurrency wallets. The funds were then diverted towards personal expenses, loan repayments, commissions, promotional activities, and asset purchases.
What Action Has The ED Taken?
The ED conducted searches at premises linked to Hashpay and its associates on Sept. 1, 2026. Imran Basha, Hitesh Kumar, Syed Usman alias Babu, and Dhamodaran were arrested under the PMLA and all four are currently in judicial custody.
On Oct. 30, the agency provisionally attached assets worth Rs 14.16 crore, including properties in Tamil Nadu, Haryana, and New Delhi, a BMW car, and bank balances. Further investigation is underway.
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