PUDUCHERRY— In a major breakthrough, Puducherry’s Cybercrime Police have arrested the alleged kingpin behind a sprawling cryptocurrency fraud that syphoned off more than ₹100 crore from unsuspecting investors across India.
Imran Basha, 37, a resident of Saibaba Colony in Coimbatore, was apprehended in Bengaluru by a special team from the Puducherry Cyber Crime Special Cell. Basha is accused of orchestrating a fraudulent crypto scheme through a fictitious digital coin named Hashpe, which promised astronomical returns and duped scores of investors.
According to police officials, Basha was on the run and wanted in connection with 22 criminal cases across six states. Authorities allege he lured investors with promises of tripling their money in just two months through the Hashpe platform, an operation now exposed as one of the most elaborate crypto scams in recent memory.
Fraud Unravels After Local Investor Loses ₹93 Lakh
The case first came to light when Asokan, a resident of Lawspet in Puducherry, filed a complaint after losing ₹93 lakh in the scheme. His report prompted a deeper investigation that soon uncovered eight more victims from the Union Territory who reported a collective loss of ₹2.5 crore.
Under the leadership of Senior Superintendent of Police Narra Chaitanya and Superintendent of Police S. Baskarane, the Puducherry Cybercrime Unit launched an intensive probe, tracking the network behind Hashpe and zeroing in on its alleged masterminds.
What followed was a months-long pursuit that eventually led to Basha’s arrest in Bengaluru. “This was a coordinated effort by our cybercrime team after tracing his digital footprint and financial trail across multiple states,” a senior official said.
Arrests Mount as Police Close in on Hashpe Network
Basha’s arrest is the latest in a string of detentions linked to the Hashpe scam. On May 17, authorities arrested another key accused, Syed Usman, also known as Babu who served as the managing director of Hashpe. Usman had evaded authorities for six months before he was apprehended in Coimbatore.
Prior to these arrests, five other suspects identified as Damodaran, Hitesh Jain, and Aravind Kumar, among others, all from Coimbatore, were taken into custody in connection with the fraud.
Investigators also seized multiple luxury vehicles, including one worth ₹1.5 crore, believed to have been purchased using defrauded funds. Police say the opulence on display was part of an elaborate ruse to build credibility around the scheme and attract more investors.
Celebrities Used to Bolster Credibility Before Coin Crashed
The Hashpe fraud relied heavily on optics and public perception. According to the investigation, the accused used endorsements from popular Indian film celebrities Tamannaah Bhatia and Kajal Aggarwal to lend the fake cryptocurrency an air of legitimacy.
The platform allegedly used these celebrity promotions to gain public trust and attract investors in droves. Once the coin’s value was artificially inflated through manipulated trading, it was abruptly rendered worthless, leaving investors with significant losses and no recourse.
“The scam followed a classic pump-and-dump model,” a senior cybercrime investigator noted. “The promoters raised the coin’s profile and then disappeared once the value collapsed.”
Authorities Continue Hunt for Remaining Suspects
While key figures like Basha and Usman are now in custody, Puducherry police believe at least five other suspects involved in the Hashpe operation remain at large. Efforts are underway to track them down, with multiple state police forces coordinating to unravel the full extent of the fraud.
Law enforcement officials have reiterated their commitment to recovering stolen funds and bringing all perpetrators to justice. They also warn citizens to exercise caution and verify the authenticity of investment platforms, particularly in the rapidly evolving and often volatile world of cryptocurrency.
As the investigation continues, the Hashpe case serves as a stark reminder of the dangers lurking behind too-good-to-be-true promises in the digital financial space.
