The Hyderabad Cyber Crime Police have busted an inter-state cryptocurrency fraud racket and arrested three persons for siphoning off 21,04,089 USDT — valued at around ₹17 crore — from a businessman’s Tron wallet through a fake KYC verification website. Preliminary findings suggest the gang may have used the same modus operandi to target several other investors.
The accused have been identified as Sushim Shripati Gaikwad from Pune, Srikanth from Hyderabad, and Lucky Choudhary from Jaipur. According to police, Gaikwad and Srikanth posed as prospective crypto buyers to gain the victim’s trust, while Choudhary designed the fraudulent website, Trontag.org, which mimicked a legitimate KYC verification platform.
The case came to light following a complaint by a 44-year-old businessman from Kalyan Nagar. The accused approached him with an offer to purchase USDT and insisted that he complete a KYC verification of his Tron wallet before the transaction. They shared a link that appeared to be an authentic verification portal. As soon as the victim entered his wallet details on the site, the entire balance was transferred to another wallet without his knowledge.
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Investigators found that the website was a phishing portal that captured wallet credentials and triggered an immediate transfer of funds. The stolen cryptocurrency was then rapidly split and moved across multiple wallets to complicate blockchain tracing.
Police said the gang identified potential targets through social media platforms and cryptocurrency trading groups. They would offer to buy tokens at prevailing market rates to build credibility and then send a fake KYC link. The portal was carefully designed with a professional interface to resemble a genuine verification service.
During the technical investigation, officers analysed digital trails, IP logs, crypto wallet movements and linked bank accounts. Based on these leads, coordinated raids were conducted in three states, leading to the arrests. Laptops, mobile phones, hardware wallets and other electronic devices were seized and sent for forensic examination.
Authorities are now working to determine the total number of victims and the overall amount siphoned off by the racket. Detailed blockchain tracing is underway, and efforts are being made to identify additional associates who may have assisted in the operation.
The cyber crime police have issued an advisory to investors, warning them never to share wallet credentials, seed phrases or private keys through unknown links. KYC procedures should only be completed on official and verified platforms. Users are also advised to check domain authenticity, SSL certification and source credibility before initiating any crypto transaction.
Officials noted a sharp rise in cryptocurrency-related cyber offences, where fraudsters exploit limited technical awareness and the lure of quick profits. Surveillance of inter-state cyber gangs has been intensified, and processes to detect and block malicious domains are being expedited.
The investigation is ongoing, and police expect more victims to come forward as digital evidence is analysed. Authorities said the operation is part of a broader crackdown on crypto fraud networks, with further action likely against similar phishing-based rackets.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
