HashPay Crypto Scheme: India’s ED Uncovers Fake Tokens, Referral Payouts and No Real Trading

• ED uncovers fake TCX and HashPay tokens with artificial profit displays.
• The scheme promised 1% daily returns and used new investors’ funds to pay earlier members.
• ED identifies ₹49.54 crore in proceeds of crime and attaches assets worth ₹14.16 crore.
  

India’s Enforcement Directorate (ED) has taken action against the Hashpay crypto investment scheme.  The project allegedly offered fake tokens and unrealistic return promises to lure people into the fraud scheme. However, investigators found that the platform used fake crypto tokens, artificial profit displays, and payouts funded by money from new investors.

India Uncovers Fake Tokens and Artificial Profit Displays in HashPay Scheme

According to the latest reports, India’s ED identified that HashPay used two fictitious tokens, TCX and HashPay, to attract investors. While no genuine crypto trading happened, the platform showed users fake profits from these tokens. These actions from the team made investors believe that they would gain notable profits from their investments in the project.

Adding to their ambitious promises, HashPay offered high daily returns of around 1%. Some plans offered returns of up to three times the initial investment. This reportedly encouraged users to bring in new investors through referral rewards and other incentives. The ED found that the HashPay members used the money collected from new members to pay early investors. While this represents a typical Ponzi scheme pattern, it creates the appearance of a profitable investment platform.

As part of the ongoing investigation, the ED has taken action against the platform. Reportedly, the platform collected around ₹112.91 crore from investors. The agency identified ₹49.54 crore as proceeds of crime and provisionally attached assets worth approximately ₹14.16 crore. The investigation has also led to the arrest of four suspects. They are currently in judicial custody. Now, the ED is checking how the funds were collected, moved, and used.

Unveiling India’s Growing List of Crypto-Related Frauds 

Significantly, the latest case of HashPay emphasizes the dangers associated with fraudulent crypto investment websites and an increasing number of Ponzi schemes. These schemes often involve false claims about fixed daily income without any credible proof of actual trading. Such platforms can attract investors because of their high yields, referral bonuses, and profit displays.

However, it should be noted that HashPay is not the first Ponzi scheme with cryptocurrencies in India. India has experienced many similar cases over the last several years amid the growing popularity of cryptocurrencies. For example, in 2023, there was the Morris Coin fraud in Kerala with fake promises of daily income of 2-3%. The ED identified around $54 crore in proceeds generated via the scheme.

Recently, Indian police arrested five people in connection with a ₹25 lakh crypto robbery in India. A group of people robbed individuals who brought a total of ₹25 lakh in Indian rupees for a proposed USDT conversion.

Crypto Investment Fraud Cases Put Indian Investors on Alert

It is important to note that the growing number of crypto hacks and threats in India is raising concerns among investors. This highlights the need for greater caution while choosing investment schemes and platforms. Investors need to be cautious, especially when projects offer high returns and profits without authentic proof.

The latest incident shows that fraudsters can use fake tokens, referral rewards, and unrealistic profit promises to attract investors. Thus, investors should check a platform’s operations and avoid schemes that guarantee unusually high returns without a clear business model.

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