Rs 38 Lakh Crypto Theft in Hyderabad: How Hackers Drained a Digital Wallet
Cybercriminals have reportedly breached a crypto wallet belonging to a Hyderabad resident stealing digital tokens worth Rs 38 lakh. The incident adds to a growing string of cryptocurrency thefts targeting individuals across India and underlines the rising threat to retail crypto holders.
How the Attack Unfolded
The breach involved hackers gaining unauthorised access to the victim’s crypto wallet. Once inside they drained the digital tokens stored there. The exact method used has not been fully disclosed but such attacks in India typically involve phishing websites, fake KYC verification portals or malicious smart contract approvals that trick users into handing over access to their wallets.
In a similar Hyderabad case from early 2026 a 44-year-old investor lost USDT worth nearly Rs 19 crore after being directed to a fake KYC site called Trontag.org. The victim unknowingly approved a malicious smart contract that allowed scammers to instantly drain his Tron wallet. Three suspects were arrested in connection with that case.
A Widening Problem in India
Crypto-related fraud and wallet theft have surged sharply across India. Over 24 lakh cybercrime complaints were filed on the National Cyber Crime Reporting Portal in 2025 with reported losses totalling Rs 22,495 crore. The recovery rate remains low. Of cumulative losses reported since the portal launched only a fraction has been returned to victims.
Globally the picture is equally grim. Crypto fraud schemes received approximately $35 billion in 2025 alone. In 2026 attackers have increasingly shifted focus from large exchange hacks to targeting individual wallet holders directly.
What Authorities Are Doing
India’s government has taken steps to address the crisis. The PRAHAAR counter-terrorism strategy released in February 2026 specifically flagged the use of crypto wallets by criminal networks. A dedicated darknet and cryptocurrency task force has been set up under the Multi-Agency Centre. The Union Budget 2025-26 also allocated Rs 782 crore for cybersecurity projects.
Cybercrime experts continue to urge crypto users to avoid clicking unverified links, never share wallet seed phrases and always use hardware wallets for large holdings.
