Chennai, Sept 5:
The Enforcement Directorate has arrested two men in an alleged cryptocurrency investment fraud involving around Rs 40 crore, while carrying out searches at 17 premises across Tamil Nadu and West Bengal in two separate money-laundering investigations.
Hitesh Kumar and Imran Basha were arrested on September 3 in connection with the alleged crypto fraud and were subsequently remanded in ED custody for five days by a special PMLA court.
The ED’s Chennai Zonal Office-II had searched 11 premises on September 1 as part of its investigation into the alleged Hashpe cryptocurrency fraud. The case originated from an FIR registered by the Puducherry Cyber Crime Police.
According to the agency, Kumar, Basha and Syed Usman alias Babu allegedly operated a fraudulent investment scheme by presenting it as a cryptocurrency trading platform. Investors were allegedly lured with promises of attractive returns through a purported digital token called TCX.
The accused allegedly used promotional events, celebrity endorsements and social media campaigns to attract investors, while the value of the token was allegedly artificially inflated. When investors subsequently attempted to withdraw their money, withdrawals were allegedly blocked.
The ED has alleged that around Rs 40 crore collected from investors was diverted through shell entities, associates and relatives. Digital devices and documents were seized during the searches.
Separately, the agency’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 ED said proceeds from drug trafficking were allegedly invested in properties, shrimp farms and vehicles in Nagapattinam, Velankanni and Thaliyamadi.