Hyderabad Techie Loses ₹2.9 Crore in Fake Crypto App Scam: Are You Next?

Indian Techie Scammed of ₹2.9 Crore via Fake Crypto App

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Authorities anticipate a surge in similar crypto scams, prompting warnings for citizens to remain vigilant online.
Law enforcement agencies are working to track down the scammers and recover the stolen funds, approximately ₹2.9 crore.
The incident highlights the need for enhanced cybersecurity measures to prevent such sophisticated digital asset frauds in the future.

Hyderabad’s IT sector is seeing a rise in complex online fraud. Recently, a 52-year-old former software employee from Niazampet lost over ₹2.9 crore to a cryptocurrency investment scam. The scam involved social media and a fake trading app, and was carefully designed with multiple layers to deceive victims.

Police records show the accused contacted the victim on Facebook in June 2025, posing as “Jyothsna Reddy,” a bridal dress designer from Bengaluru. Using a fake profile, they slowly gained the victim’s trust through online chats, according to a report by The Times of India.

Promised profits through crypto trading

According to police, the suspect got the victim involved in cryptocurrency investments and persuaded him to download a harmful app called “Goldblockchainx.” She then set up a trading account for him on the app and walked him through how to invest.

The platform created a false sense of trustworthiness by using common psychological tricks. First, someone invested 50,000 rupees and was allowed to withdraw some of their initial money, making it seem like the system was legitimate. The fake online display then showed large and growing profits, which encouraged the person to keep sending money to various bank accounts and digital payment addresses provided by a chatbot within the app.

After that, all money deposited was sent to different bank accounts and UPI IDs. These details were given by a customer service chatbot within the app, and changed each time.

Systematic siphoning over 60 days

According to police, the victim thought they were taking advantage of a profitable investment opportunity and transferred almost ₹2.9 crore between July 11 and September 8, 2025. The scheme fell apart when they tried to withdraw the money, as the platform requested extra payments for “taxes” and “clearance fees.” Despite paying these additional amounts, the victim never received their funds.

The victim discovered they had been scammed when they couldn’t withdraw their money and the scammer kept avoiding sharing any personal information.

After receiving a complaint, Cyberabad Police launched a fraud investigation and started tracing the money used by the scam. They are currently reviewing transaction details – including UPI IDs and bank transfers – and the platform’s digital setup to find those responsible.

India crypto scams keep rising 

A new cryptocurrency fraud case in Hyderabad highlights the growing number of scams and security breaches affecting individual investors in India.

In April, a cybercrime incident in Hyderabad revealed that hackers stole almost ₹38 lakh in cryptocurrency from a victim’s wallet. They reportedly gained access to the victim’s private keys and login information.

According to investigators, the attackers quickly tried to convert the stolen funds across several platforms to hide where the money was going. This points to increasing problems with the security of digital wallets, scams using fake emails (phishing), and fraudulent investment opportunities aimed at crypto users in India.

This event highlighted the risks for new crypto investors who lack security measures. Cybercriminals are getting better at using tricks, fake trading sites, and hacking wallets to steal funds.

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2026-05-29 10:46