Key Highlights
- Scammers stole $21M USDT via a fake KYC site, tricking a Hyderabad man into approving a malicious Tron wallet contract.
- The police have arrested three accused so far with efforts underway to trace other absconding suspects.
- Crypto frauds are growing rapidly, with attackers combining tech tricks and trust, as seen in HPZ Token and Trontag.org scams.
A high-value cryptocurrency fraud has rocked Hyderabad, with three individuals arrested for stealing $21,04,089 USDT worth around ₹19,08,98,915 from a local investor. The victim, a 44-year-old man from Kalyan Nagar, lost his funds after interacting with a fake KYC website called Trontag.org.
As per a local report, the victim was tricked into linking his Tron wallet to the phishing website, and he inadvertently accepted a malicious smart contract. This caused his money to be instantly transferred to the scammers’ accounts.
The police have arrested three suspects: Sushim Shripati Gaikwad from Pune, Srikanth from Hyderabad, and Lucky Choudhary from Jaipur. According to the investigators, Gaikwad and Srikanth tricked the victim by pretending to purchase USDT, while Choudhary is said to have designed the fake website. The officials stated that the crime was carefully planned, and there could be other victims in the country as well.
How the scam worked
The scam was in the form of a normal KYC verification process. The scammers informed the victim that his Tron wallet had to be verified using a website named Trontag.org. Believing that the website was genuine, he provided his personal details. This led to the immediate transfer of $21,04,089 USDT from his wallet by a hidden smart contract on the website.
Police said the three scammers worked like a team with clear roles. Gaikwad and Srikanth handled direct contact with the victim, while Choudhary ran the website, making it look like a genuine KYC platform. During the investigation, authorities seized four mobile phones and two laptops and are still tracking other suspects on the run.
Pattern mirrors past crypto frauds
This case highlights how crypto scams are becoming more sophisticated in India. In December last year, the CBI charged 30 people, including two Chinese nationals, over an HPZ Token scam. The scheme tricked thousands of investors during the COVID-19 lockdown, promising unusually high returns from supposed cryptocurrency mining.
Investigators discovered that the money never went into real mining. Instead, it was funneled through a network of shell companies. The accused, including Wan Jun and Li Anming, ran the operation from overseas while using local associates in India to handle things on the ground.
Emerging wallet scams
Besides large-scale scams, crypto users are now facing more personal attacks. Scammers send letters that look official, pretending to be from Trezor and Ledger, asking users to complete “Authentication” or “Transaction Checks.” These letters seem convincing and often include deadlines or old customer information to make people act quickly.
Experts warn that the letters encourage users to scan QR codes, which take them to fake websites. Once someone enters their wallet recovery phrases, the scammers gain full access to their funds. Users have to stay alert and safeguard their assets with proper processes and safeguards.
Also Read: Kiyosaki Says Imminent Market Crash Is Opportunity to Invest in Bitcoin
