Chennai, September 24 (Daily Kiran) : The Enforcement Directorate (ED) has arrested two individuals, Syed Usman, also known as Babu, and Damodharan Balachandran, in connection with the HashPay cryptocurrency fraud case. This action is part of an ongoing investigation into money laundering linked to the scheme.
Both suspects were apprehended on September 22 under Section 19 of the Prevention of Money Laundering Act, 2002, and were subsequently presented before a special PMLA court, which remanded them to three days of judicial custody.
In its brief announcement, the ED did not disclose specific details regarding Balachandran’s role in the scheme. These arrests mark the latest developments in an investigation that has already included searches and the detention of two other suspects.
On September 1, the ED’s Chennai Zonal Office-II conducted raids at 11 locations across Chennai, Coimbatore, and Kolkata to uncover how funds collected through HashPay were managed. Following these searches, the agency arrested Hitesh Kumar and Imran Basha on September 3.
According to the ED, Kumar, Basha, and Usman promoted HashPay as a cryptocurrency trading platform. Investigators allege that investors were lured with promises of attractive returns through a token named TCX. The ED is still examining these claims and the movement of investor funds.
The agency is investigating whether the funds raised from the investment scheme were diverted elsewhere and if the transactions fall under the purview of money laundering. This inquiry was initiated after Puducherry cyber crime police began investigating fraud allegations. The ED’s case is linked to the management of earnings from the original crime.
With the recent arrests, Usman and Balachandran are now in custody. Their three-day judicial remand will assist the special court in continuing proceedings as investigators work to trace the money trail.
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