Suryaa National Desk: The Enforcement Directorate (ED) has taken action against the operators of the 'HashPay' application for allegedly defrauding the public under the guise of cryptocurrency investments. Officials from the ED's Chennai Zonal Office, investigating under the Prevention of Money Laundering Act, have provisionally attached assets worth Rs 14.16 crore, including immovable properties, a luxury BMW car, and bank balances.
HashPay functioned as a cryptocurrency investment and trading application. Operators attracted investors through social media, seminars, and referral networks, promising a daily return of approximately 1 percent on investments, with some plans claiming to offer up to triple the invested amount.
The ED investigation revealed that no actual cryptocurrency trading or business operations were conducted by the app. Operators created fake digital tokens and artificially displayed profits on the app's dashboard to deceive investors. The scheme operated as a Ponzi model, where funds collected from new investors were used to pay daily returns and referral bonuses to existing ones.
The ED identified that funds collected from the public were diverted to personal accounts and shell companies to acquire luxury assets and vehicles. After gaining investor trust by paying returns for a period, the operators eventually stopped withdrawals and closed the platform. The ED investigation followed FIRs registered at various police stations based on complaints from victims. Officials have advised the public to remain cautious regarding unauthorized apps and cryptocurrency schemes that promise abnormal returns.