₹17 Crore Crypto Fraud: Three Arrested Across Three States via Fake KYC Link
Cryptocurrency Phishing Scam Busted by Hyderabad Cyber Crime Police
A cryptocurrency phishing scam has been busted by the Hyderabad Cyber Crime Police, resulting in the arrest of three individuals and the recovery of ₹17 crore (approximately $2.2 million USD) in stolen funds. The scam, which involved the creation of a fake KYC verification website, targeted a 44-year-old businessman from Kalyan Nagar and potentially several other investors.
Modus Operandi of the Scammers
According to the police, the scammers, identified as Sushim Shripati Gaikwad from Pune, Srikanth from Hyderabad, and Lucky Choudhary from Jaipur, used a sophisticated modus operandi to gain the trust of their victims. Gaikwad and Srikanth posed as prospective buyers of cryptocurrency, while Choudhary designed the fake KYC website, Trontag.org, which mimicked a legitimate verification platform.
The Scam
The scam began when the accused approached the victim with an offer to purchase USDT (Tether) cryptocurrency and insisted that he complete a KYC verification of his Tron wallet before the transaction. The victim was provided with a link to the fake website, which appeared to be an authentic verification portal. However, as soon as the victim entered his wallet details on the site, the entire balance of 21,04,089 USDT was transferred to another wallet without his knowledge.
The police investigation revealed that the website was a phishing portal designed to capture wallet credentials and trigger an immediate transfer of funds. The stolen cryptocurrency was then rapidly split and moved across multiple wallets to complicate blockchain tracing.
Investigation and Arrests
The police were able to track down the scammers through a technical investigation that involved analyzing digital trails, IP logs, crypto wallet movements, and linked bank accounts. Coordinated raids were conducted in three states, leading to the arrests and the seizure of laptops, mobile phones, hardware wallets, and other electronic devices.
Advisory to Investors
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, and users are advised to check domain authenticity, SSL certification, and source credibility before initiating any crypto transaction.
Conclusion
The incident highlights the growing threat of cryptocurrency-related cyber offenses, where scammers exploit limited technical awareness and the lure of quick profits. The authorities have intensified surveillance of inter-state cyber gangs and are expediting processes to detect and block malicious domains. The investigation is ongoing, and further action is likely against similar phishing-based rackets.
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