Hyderabad Police Crack Down on Major Cryptocurrency Phishing Scam
In a significant breakthrough, the Hyderabad cybercrime police have apprehended three individuals accused of orchestrating a sophisticated cryptocurrency phishing scheme that resulted in losses exceeding Rs 19 crore for a local trader. The elaborate fraud involved a deceptive website designed to mimic legitimate cryptocurrency verification processes.
How the Sophisticated Phishing Operation Unfolded
According to police reports, the scam began in late January when two of the accused, identified as Srikanth Bairoju from Shamshabad and Sushim Sripati Gaikwad from Pune, approached the victim posing as potential cryptocurrency buyers. The 44-year-old victim, a resident of Kalyan Nagar in Madhura Nagar, was persuaded to visit a website called Trontag.org under the false pretense of completing mandatory KYC (Know Your Customer) verification for his cryptocurrency wallet.
"Once the victim complied with the process, a malicious smart contract got triggered allowing cryptocurrency transfer from his wallet to that of the fraudsters," explained S Naresh, cybercrime inspector. "Subsequently, the victim transferred 2,104,089 USDT (worth over Rs 19 crore approximately) from his wallet to that of the accused."
Police Investigation and Arrests
The victim realized he had been defrauded when the perpetrators ceased all communication following the substantial cryptocurrency transfer. After filing a formal complaint, Hyderabad police registered a case on February 3 under relevant sections of the Bharatiya Nyaya Sanhita (BNS) and the Information Technology Act, initiating a comprehensive investigation.
Through meticulous digital forensics, investigators traced the gang's electronic footprints, leading to the identification of the primary suspects. On February 15, authorities arrested Bairoju in Hyderabad and Gaikwad in Pune. A third accomplice, Lucky Choudhary from Jaipur, who allegedly created the fraudulent Trontag.org website, was subsequently apprehended.
During the arrests, police seized crucial evidence including four mobile phones and two laptops that were instrumental in executing the sophisticated cryptocurrency theft.
Ongoing Investigation and Recovery Efforts
"A few more accused involved in the crime are on the run. Our team has launched a manhunt to nab them," stated V Aravind Babu, Deputy Commissioner of Police for cybercrime. "We are also contacting the cryptocurrency companies linked to the fraud to try and recover the defrauded amount."
The investigation remains active as authorities pursue additional suspects believed to be connected to the elaborate cryptocurrency phishing ring. Police are coordinating with cryptocurrency platforms and exchanges to potentially trace and recover the stolen digital assets.
Important Security Recommendations for Crypto Traders
In light of this sophisticated scam, Hyderabad cybercrime police have issued crucial security advisories for cryptocurrency traders and investors:
- Avoid clicking on unverified links or visiting suspicious websites claiming to offer cryptocurrency services
- Enable two-factor authentication on all cryptocurrency accounts and wallets
- Independently verify KYC requirements directly through official cryptocurrency platforms rather than third-party sources
- Exercise extreme caution when approached by unknown parties offering cryptocurrency transactions or verification services
- Report any suspicious cryptocurrency-related activities immediately to cybercrime authorities
This case highlights the growing sophistication of cryptocurrency-related crimes in India and underscores the importance of heightened digital security awareness among cryptocurrency users. As digital assets become increasingly mainstream, law enforcement agencies are developing specialized capabilities to combat emerging cyber threats targeting the cryptocurrency ecosystem.
