Hyderabad I-T unit uncovers ₹170 crore crypto trades under stolen identities

HYDERABAD: The income tax department’s foreign investigation unit in Hyderabad has uncovered cryptocurrency trades worth ₹170 crore allegedly conducted using stolen identities of ordinary citizens.

Acting on a Central Board of Direct Taxes (CBDT) report that flagged 20 suspicious cases, officials visited remote villages in Telangana and Andhra Pradesh. Nine cases have been verified so far.

Farmers and workers linked to crore-value trades

In Mirdodi village of Siddipet district, investigators found farmer S Narasimha listed as having purchased cryptocurrency worth ₹9.5 crore via Binance. But when met in his paddy field, Narasimha told officials, “I have no idea about this,” making it clear his identity had been misused.

Similarly, in Khammam rural mandal, a food delivery worker, Shiva Pamula, was shown to have traded crypto worth ₹8.5 crore. Investigators said he had no financial capacity to make such investments.

Wider probe into identity theft racket

Officials suspect a larger identity theft racket where PAN cards and personal details of non-filers are being used to route crypto trades. The probe now spans Hyderabad, Siddipet, Khammam, Jagtial, Sattupalli and Vijayawada.

Other cases include:

• A water plant employee in Lalaguda, Hyderabad, linked to ₹34.7 crore in trades.

• A farmer from Sattupalli tied to ₹31 crore.

• A pharmaceutical worker from Khammam, now in Visakhapatnam, linked to ₹19.6 crore.

Officials warned the nine cases could be “just the tip of the iceberg.” Investigations are continuing to identify those behind the racket, which has raised concerns over fraud and security in India’s fast-expanding digital currency market.