ED Takes Action Against HashPe Crypto Ponzi Scheme, Attaches INR 4 Crore Assets
The ED has provisionally attached assets worth around INR 14.2 crore in the HashPe cryptocurrency Ponzi fraud case under the PMLA, 2002. The agency said HashPe allegedly misled investors with promises of a 1% daily return, referral commissions and cryptocurrency earnings.
Assets, both real and personal, valued at around INR 14.2 Cr. have been provisionally attached by the Enforcement Directorate (ED), Chennai. This penalty has been established in response to an alleged cryptocurrency investment fraud perpetrated by HashPe, a brand of Pan India Cryptocurrency. The PMLA, 2002, which prohibits the laundering of illicit funds, was used in the attachment, which took place on October 30, 2026.
Additionally, the Special Court (PMLA), Puducherry, has received a prosecution complaint from the ED. The Enforcement Division claims that Hashpe ran a Ponzi scheme using cryptocurrency, promising investors 1% daily profits. In addition, participants might earn referral commissions and prizes like luxury cars and international vacations, with returns of up to three times the initial investment. According to the agency, the assets in question consist of a BMW, money in bank accounts, and real estate in the Indian states of Tamil Nadu, Haryana, and New Delhi. An FIR was filed by the Cyber Crime Police Station, Puducherry, in accordance with the Bharatiya Nyaya Sanhita (BNS), 2023, and the Information Technology Act, 2000, which led to the commencement of the investigation.
Modus Operandi of Ponzi Scheme Offered by HashPe
According to ED's research, HashPe ran its business out of a multi-level marketing platform and the website hashpe.io. Allegedly, in order to raise capital, its founders accepted a variety of payment methods, including bitcoin, bank transfers, and cash. Reportedly, Bitcoin and the stablecoin USDT (Tether) were utilised to enable transactions in the scheme.
The agency, however, determined that there was no evidence of actual bitcoin transactions to support the claimed trading operations. Reimbursing previous investors and paying commissions to agents supposedly took precedence over using funds received from new investors. Investors lost money since the site was halted and withdrawals were later banned.
Findings of ED
The ED discovered that the promoters allegedly manufactured and ascribed false values to cryptocurrency tokens like TCX and HashPe for nearly zero purchase cost. Even though there wasn't any actual cryptocurrency trading activity, the website nonetheless managed to show investors profits. The promoters enticed investors with the promise of international cruises, celebrity endorsements, and promotional events showcasing expensive automobiles and gold. In addition, they set up a multi-level marketing system where agents called "Leaders" could earn commissions by recruiting new investors.
According to the ED, the scheme managed to collect around INR 112.91 Cr, with some of the money going back to the investors. Before being turned into cryptocurrency, the remaining funds were sent to the bank accounts of "HIFY Circle" and other affiliated businesses. Allegedly, the money went toward paying off debt, lavish commissions, and advertising efforts, among other things. The proceeds of crime in the case have been estimated by the CBI to be at INR 49.54 crore.
