Fraud Briefing

The Enforcement Directorate arrested two more suspects, Syed Usman (alias Babu) and Dhamodharan Balachandran, on September 22, 2026, bringing the total to four arrests in the Rs 146 crore Hashpe cryptocurrency money-laundering investigation under Section 19 of the PMLA, 2002.

Operators marketed Hashpe as a legitimate cryptocurrency trading platform, luring investors with promises of high returns through a fabricated token called TCX. The scheme used celebrity endorsements, referral commission incentives, and cruise ship events to build credibility. Funds, Rs 16 crore in cash, Rs 10.52 crore via the Hify Circle bank account, and Rs 120 crore represented as TCX tokens, were diverted to personal accounts and invested in cryptocurrency and property to layer proceeds.

The Status of Policing in India Report (SPIR) 2026, based on a survey of 8,306 respondents across 16 states, found banks "refused to take accountability, or assist the victim through the recovery process," earning a 1 out of 5 rating. Only 6 of 15 cybercrime victims who complained had FIRs registered, and 27% of complainants paid bribes to police. The report flagged a 13% cybercrime incidence rate, with younger and less-educated populations at highest risk.