Indian Techie Scammed of ₹2.9 Crore via Fake Crypto App

The IT corridor of Hyderabad is facing an escalating wave of sophisticated digital asset frauds. In the latest incident, a 52 year old former software professional from Hyderabad’s Niazampet area has allegedly lost more than ₹2.9 crore after falling victim to an intricate, multi-layered cryptocurrency investment scam operated via social media and a fraudulent trading application.

According to The Times of India report citing Cyberabad Police records, the accused approached the victim on Facebook in June 2025 using a fake profile under the name “Jyothsna Reddy.” The persona claimed to be a successful Bengaluru-based bridal dress designer and gradually built trust with the victim through online conversations.

Promised profits through crypto trading

Police said the accused introduced the victim to cryptocurrency investments and convinced him to install a malicious mobile application named “Goldblockchainx.” She reportedly created a trading account on the platform and guided him through the investment process.

To manufacture legitimacy, the platform utilized classic behavioral engineering tactics. Initially, the victim invested ₹50,000 and was reportedly allowed to to successfully withdraw a portion of his early capital, tricking the victim into believing the liquidity pool was genuine. As the fake dashboard continued displaying large profits and increasing returns, the victim kept transferring funds to multiple bank accounts and UPI IDs provided through an in-app chatbot.

All subsequent deposits were routed to distinct third-party bank accounts and UPI IDs provided dynamically by an in-app customer service chatbot.

Systematic siphoning over 60 days

Believing that he was capitalizing on a highly lucrative market cycle, police said the victim transferred nearly ₹2.9 crore between July 11 and September 8, 2025. The deception collapsed when the victim attempted to withdraw the funds; the platform allegedly demanded additional “tax payments” and “clearance charges.” Even after making those payments, the withdrawals were never processed. 

The victim later realized he had been scammed after repeated failed withdrawal attempts and the fraudster’s continued refusal to share personal details.

Following the complaint, Cyberabad Police registered a cheating case and began investigating the money trail linked to the fraudulent platform and associated bank accounts. Officials are now examining the UPI IDs, bank transfers, and digital infrastructure used in the scam to identify the individuals involved.

India crypto scams keep rising

The latest Hyderabad crypto fraud case arrives as India continues witnessing a surge in cryptocurrency-related scams and wallet breaches targeting retail investors.

Earlier this year in April, a separate cybercrime case in Hyderabad exposed how hackers siphoned nearly ₹38 lakh worth of digital assets from a victim’s crypto wallet after allegedly compromising sensitive wallet credentials and private key access.

In that case, investigators said attackers attempted a rapid liquidation of the stolen assets across multiple platforms to obscure fund movement, highlighting growing concerns around wallet security vulnerabilities, phishing attacks, and fake investment schemes targeting Indian crypto users.

The incident was widely viewed as another warning sign for retail investors entering crypto markets without proper security protections, as cybercriminals increasingly exploit social engineering tactics, fraudulent trading platforms, and compromised wallet infrastructure.

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