The Income Tax Department’s Foreign Investigation Unit in Hyderabad has uncovered a major cryptocurrency fraud involving stolen identities of unsuspecting citizens. Acting on a Central Board of Direct
Taxes (CBDT) report that flagged 20 suspicious cases, officials visited villages across Telangana and Andhra Pradesh to verify the trades.
In nine cases confirmed so far, crypto transactions totaling Rs 170 crore were traced—none of which were carried out by the people whose names were used.
In one striking instance, investigators reached Mirdodi village in Telangana’s Siddipet district expecting to meet an investor who had allegedly purchased cryptocurrency worth Rs 9.5 crore via Binance. Instead, they found S Narasimha, a paddy farmer completely unaware of any such transaction. “I have no idea about this,” he reportedly said, Times Of India reported.
Similarly, a food delivery worker from Khammam, Shiva Pamula, was shocked to learn he was linked to trades worth Rs 8.5 crore. Officials suspect a broader identity theft racket using PAN cards and personal details of low-income individuals to mask high-value crypto trades.
According to the TOI report, the probe covers areas including Hyderabad, Siddipet, Khammam, Jagtial, Sattupalli, and Vijayawada. All individuals named in the trades are non-filers of income tax, reinforcing suspicions of fraudulent activity.
Other notable cases include a water plant worker in Lalaguda tied to Rs 34.7 crore in trades, a Sattupalli farmer linked to Rs 31 crore, and a pharma employee from Khammam associated with Rs 19.6 crore.
Officials believe these findings may be just “the tip of the iceberg,” and investigations are ongoing to identify the masterminds behind the racket. The case has sparked serious concerns over data security and financial fraud in the rapidly expanding cryptocurrency sector.
