Enforcement Directorate arrests two in crypto fraud

CHENNAI: The Enforcement Directorate (ED) has arrested two men in connection with an alleged cryptocurrency investment fraud in which around Rs 40 crore was collected from investors, even as the agency conducted searches at 17 premises in Chennai, Coimbatore, Kolkata and Nagapattinam in two separate money-laundering cases.

Hitesh Kumar and Imran Basha were arrested on September 3 in the cryptocurrency fraud case and were subsequently remanded to five days’ ED custody by a special PMLA court.

The ED’s Chennai Zonal Office-II had searched 11 premises on September 1 as part of its probe into the Hashpe cryptocurrency fraud case. The investigation was initiated based on an FIR registered by the Puducherry Cyber Crime Police.

According to the ED, Kumar, Basha and Syed Usman alias Babu allegedly floated a fraudulent investment scheme in the guise of a cryptocurrency trading platform and lured investors by promising lucrative returns through a purported token called TCX.

The accused allegedly used promotional events, celebrity endorsements and social media campaigns to attract investors, while artificially inflating the value of the token.

Withdrawals were subsequently blocked, and around Rs 40 crore collected from investors was allegedly diverted through shell entities, associates and relatives, the agency said.

Separately, the ED’s Madurai Sub-Zonal Office searched six premises in Nagapattinam on September 3 in a money-laundering case linked to alleged methamphetamine and ganja trafficking.

The agency said M Alex, a repeat offender, was intercepted by the Narcotics Control Bureau (NCB) in April 2025 with methamphetamine. The proceeds allegedly generated through drug trafficking were subsequently invested in properties, shrimp farms and vehicles in Nagapattinam, Velankanni and Thaliyamadi, it said.

Digital devices and documents were seized during the searches in both cases, the ED said.