Hyderabad man duped of Rs 17 crore in USDT scam; fake ‘Trontag’ KYC site exposed

Hyderabad: The Hyderabad Cyber Crime Police have arrested three persons for allegedly orchestrating a large-scale cryptocurrency fraud involving the theft of $21,04,089 USDT (approximately Rs 17 crore) through a malicious website that impersonated a KYC verification platform.

The accused allegedly lured a 44-year-old man from Kalyan Nagar, Hyderabad, under the pretext of purchasing USDT (Tether cryptocurrency) and diverted the funds from his Tron wallet without his knowledge.

How did the fraud happen?

According to police, the victim was approached by unknown persons expressing interest in buying USDT from him. They informed him that his Tron wallet address needed to be KYC-verified through a website named Trontag.org.

Believing the claim to be genuine, the victim accessed the link and entered the required details. During the process, a malicious smart contract was enabled, which resulted in the automatic transfer of $21,04,089 USDT from his wallet to the accused persons’ wallet without further authorisation.

Following the complaint, police registered a case (Crime No. 129/2026) under Sections 66-C and 66-D of the IT Act, along with relevant sections of the Bharatiya Nyaya Sanhita (BNS), and launched an investigation.

Accused arrested across states

During the probe, police identified and arrested: Sushim Shripati Gaikwad (A-2) from Pune, Maharashtra, Srikanth (A-4) from Hyderabad, and Lucky Choudhary (A-3) from Jaipur, Rajasthan.

Police said Lucky Choudhary allegedly designed the malicious website Trontag.org, which impersonated a KYC verification platform, while the other accused approached the victim posing as crypto buyers.

Investigators suspect the accused were operating in an organised manner and may have cheated several victims across India. Efforts are underway to trace and arrest other absconding accused. Further investigation is in progress.

Modus Operandi

Police explained the fraud pattern as follows:

- Fraudsters contact victims claiming interest in buying cryptocurrency such as USDT.

- Victims are directed to a fake KYC verification website.

- The website prompts them to connect their crypto wallet.

- On approving a “verification” transaction, a malicious smart contract is activated.

- Funds are automatically transferred to the fraudsters’ wallet without further consent.

Police seized: Four mobile phones and two laptops from the possession of the accused.

Public advisory

The Cyber Crime Police issued the following advisory:

Do not connect your crypto wallet to unknown or unverified websites.

Carefully verify website URLs, as fraudulent sites often mimic legitimate platforms.

Use only reputable cryptocurrency exchanges and official platforms.

Regularly review and revoke suspicious smart contract approvals using trusted blockchain tools.

Enable two-factor authentication (2FA) wherever available.

Victims of cybercrime can seek immediate assistance by dialling 1930 or by visiting cybercrime.gov.in.