Hyderabad Crypto Racket Unearths Rs 547 Crore Money Trail to Cambodia
A deep-dive investigation by Times of India into a cybercrime-linked cryptocurrency racket centered in Telangana's Khammam-Sathupalli belt has uncovered a far more extensive and structured financial network than previously understood. What initially appeared as a routine mule account operation has, upon rigorous scrutiny, revealed a highly sophisticated racket that channels funds from defrauded victims directly into international crypto networks, with strong connections to entities based in Cambodia.
Sophisticated Network Exploiting Low-Income Individuals
Persons with low incomes were allegedly used as conduits in this elaborate scheme, with their identities exploited to move substantial sums of money. Khammam police and tax investigators have meticulously traced transactions amounting to a staggering Rs 547 crore through a web of interconnected bank accounts. Documents reviewed by TOI, including detailed police reports from Khammam, findings from the Hyderabad income tax foreign assets investigation unit, and comprehensive crypto wallet flow analyses, all point to a consistent and alarming pattern.
From Bank Accounts to International Crypto Wallets
Funds siphoned from victims were systematically routed through the bank accounts of ordinary citizens, converted into the stablecoin USDT, moved across multiple private wallets, and ultimately sent to deposit wallets associated with Huione Pay. This network has drawn significant international scrutiny over serious money laundering concerns. Investigators state that a substantial share of cybercrime cases in Telangana—nearly 70%—have direct links to Cambodia, where large-scale scam centers are believed to be operating extensively.
Records reveal a striking mismatch: individuals with modest means—including farmers, delivery workers, and unemployed youth—were listed as account holders for high-value transactions that far exceeded their financial capacity. This discrepancy raised red flags during the investigation.
Blockchain Analysis and FIR Details
Blockchain analysis utilizing the Arkham Intelligence platform, which links wallet activity to identifiable entities, indicates that once illicit funds entered the banking system, they were layered through numerous private wallets before being routed outward to international destinations.
A five-page FIR registered at VM Banjar police station in Khammam on December 24, 2025, names several accused, including Udathaneni Vikas Chowdary, Potru Praveen, Potru Manoj Kalyan, Morampudi Chinna Keshavulu, and Junjunuri Shivakrishna, in a comprehensive cheating and cybercrime case. According to the complaint, an unemployed man from Sathupalli mandal was lured with false promises of a job or business opportunity and persuaded to open bank accounts. He subsequently lost control of his mobile numbers, online banking credentials, debit cards, and even blank signed cheques.
Scale of Misuse and Crypto Flow
The FIR alleges that funds obtained by defrauding victims both in India and abroad were channeled through such compromised accounts before being transferred to entities linked to the Extrika Group and its associates. The Khammam police remand report underscores the massive scale of the alleged misuse. Among the transactions cited were Rs 114 crore in accounts linked to Kalyan and Rs 80.41 crore tied to Vikas, contributing to the total Rs 547 crore tracked across various accounts.
The next phase of the money trail emerges from detailed crypto wallet flow analyses and tax records. After obtaining wallet addresses from official documents, TOI examined blockchain data through Arkham Intelligence. This analysis suggests a tightly controlled system where funds were converted into USDT and circulated within a closed network before being pushed outward to international endpoints.
Tax Records and Unexplained Investments
Tax records describe significant internal movement among three key individuals: the assessee Vikas, his wife Nagapriya Boppana, and his father-in-law Boppana Khadar Babu. The records state that "most of the P2P transactions" occurred within this closed group. Investigators reported that the assessee failed to explain the source of funds used for large USDT purchases, could not reconcile Binance records with bank statements, and did not disclose the private wallets receiving the transfers.
A particular pattern was identified: USDT was accumulated over weeks and then transferred—often through multiple intermediary wallets—to Huione Pay deposit addresses. The scale of these transactions was substantial. Records show that 29,40,542 USDT was purchased, with 5,39,842.91 USDT (valued at Rs 4.87 crore) treated as unexplained investment for the financial year 2022-23, and 24,00,699.05 USDT (valued at Rs 22.65 crore) similarly flagged for FY 2023-24. Total bank credits of Rs 16.62 crore were also identified over three consecutive financial years, highlighting the extensive nature of this financial racket.
