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This article was first published on TurkishNY Radio.
A 69-year-old businessman from Somajiguda, Hyderabad, has reported losing ₹2.65 crore in what authorities describe as a carefully staged online investment fraud.
The case was formally registered with the Hyderabad Cyber Crime Police after the victim first submitted details through the Government of India’s National Cyber Crime Reporting Portal (cybercrime.gov.in), the official platform managed by the Ministry of Home Affairs.
Police confirmed that the incident began on August 30, 2025, when the businessman was contacted on Facebook by someone posing as actress Ramya Krishnan.
The impersonator introduced an online trading platform called “Polyus Finance PFP Gold” and claimed it offered profitable cryptocurrency and stock investments.
The victim, who was exploring funding options for planned resort and apparel ventures, was persuaded to participate. What followed, investigators say, reflects a pattern increasingly seen in India’s growing digital asset sector.
Hyderabad Crypto Scam: How Trust Was Gained
According to the complaint, the platform displayed what appeared to be consistent profits in a USDT (Tether) cryptocurrency account. To build credibility, the operators allowed the businessman to withdraw ₹4,300 on September 12, 2025.
That small but successful withdrawal appears to have strengthened his confidence. Over the next three months, between September and December 2025, he transferred ₹2.65 crore in ten separate transactions.
When he later attempted to withdraw a larger portion of his funds, the platform demanded an additional 15% “processing fee.” After he refused to pay, the website became inaccessible and communication stopped entirely.
Public blockchain networks such as Ethereum record token transfers transparently. Documentation from the Ethereum Foundation explains that ERC-20 tokens like USDT leave visible transaction trails.
Tools such as Etherscan allow the public to view wallet activity. However, tracing funds to specific individuals remains challenging when assets are moved through multiple wallets or exchanges.
Part of a Wider Pattern Across India
The Hyderabad case is not isolated. The Central Bureau of Investigation (CBI) recently confirmed arrests in a Kerala-based cryptocurrency-related fraud case involving ₹1.86 crore. In another ongoing probe, investigators are examining a separate ₹350 crore investment scheme that allegedly promised fixed high returns without regulatory approvals.
Official CBI statements indicate that suspects in such cases often route funds through “mule accounts” and convert assets across various cryptocurrencies to obscure their origin.
While cryptocurrency trading is permitted in India, it is subject to taxation under Section 115BBH of the Income Tax Act. The Reserve Bank of India has repeatedly cautioned citizens about speculative digital asset schemes and high-return promises.
Authorities emphasize that impersonation scams, especially those using celebrity names, have become more frequent. Social media outreach followed by private messaging remains a common entry point.
What Investigators Are Doing
Hyderabad Cyber Crime Police have initiated an investigation under relevant provisions of the Information Technology Act, 2000, and the Indian Penal Code. Officers are reviewing banking transactions, cryptocurrency wallet addresses, and telecom records connected to the complaint.
Law enforcement agencies increasingly rely on blockchain analytics tools to map fund flows. However, cooperation from financial institutions and exchanges is often required, especially if funds move across jurisdictions.
At this stage, officials have confirmed the financial loss but have not disclosed whether the funds were transferred outside India.
Lessons for Investors
This case highlights the importance of verification before transferring funds to online investment platforms. Authorities recommend:
- Confirming platform legitimacy through regulatory checks.
- Avoiding schemes that guarantee fixed or unusually high returns.
- Verifying celebrity endorsements through official, verified accounts.
- Reporting suspicious activity immediately via cybercrime.gov.in.
Digital assets continue to attract new participants in India. However, cases like this demonstrate that caution remains essential. Early reporting improves the chances of tracking funds and identifying those responsible.
The Hyderabad incident serves as a reminder that transparency in blockchain technology does not eliminate fraud risks. Careful due diligence remains the strongest safeguard for investors entering cryptocurrency markets.
Summary
- A 69-year-old businessman from Hyderabad lost ₹2.65 crore after being drawn into a crypto investment scheme run through a fake celebrity Facebook profile.
- The scammers gained his trust by allowing a small ₹4,300 withdrawal, then later demanded a 15% fee before cutting off all contact.
- He reported the fraud through India’s official cybercrime portal and later approached Hyderabad Cyber Crime Police.
- Authorities are now investigating under IT Act and IPC provisions, examining bank transfers and crypto wallet activity.
Glossary of Key Terms
1. Cryptocurrency
A form of digital money that exists only online. It runs on blockchain technology and allows people to send funds directly without using banks.
2. Stablecoin (USDT)
A type of cryptocurrency designed to keep a steady value, usually linked to the U.S. dollar. USDT is commonly used for trading and transfers in crypto markets.
3. Blockchain
A digital record book that stores transaction details across many computers. It makes transfers visible and permanent, but it doesn’t automatically prevent scams.
4. ERC-20 Token
A technical standard for creating tokens on the Ethereum network. Many digital assets, including USDT, follow this format so they can work with wallets and exchanges.
5. Mule Account
A bank or digital account used by scammers to move stolen money. These accounts help hide where the funds originally came from.
6. Impersonation Scam
A fraud method where criminals pretend to be trusted individuals—such as celebrities—to gain confidence and convince victims to invest or transfer money.
7. National Cyber Crime Reporting Portal
India’s official online platform (cybercrime.gov.in) where people can report online fraud, hacking, and cryptocurrency-related financial crimes.
8. Information Technology Act, 2000
India’s main law dealing with cyber offenses. It provides the legal basis for investigating and prosecuting digital fraud and online financial scams.
FAQs About Hyderabad crypto scam
1. What exactly happened in the Hyderabad crypto scam?
A Hyderabad businessman was tricked into investing ₹2.65 crore through a fake celebrity Facebook profile that promoted a fraudulent crypto platform promising high and safe returns.
2. How did the scammers gain his trust?
They showed fake profits in his USDT account and even allowed a small ₹4,300 withdrawal, which made the scheme appear genuine before asking for larger payments.
3. How can someone check if a crypto platform is real?
Before investing, verify the website’s authenticity, check regulatory status, confirm celebrity endorsements from official accounts, and avoid platforms guaranteeing fixed or unusually high returns.
4. What should someone do if they fall victim to a crypto scam?
Report the incident immediately on India’s cybercrime portal, inform local cybercrime police, save all transaction records, and cooperate fully with investigators reviewing wallet and bank details.
