Hyderabad: An investigation by TOI into a cybercrime-linked crypto racket centred in Telangana’s Khammam-Sathupalli belt has uncovered a far deeper and more structured money trail than previously known. What initially appeared to be a typical mule account operation has, on closer scrutiny, revealed a sophisticated racket running from defrauded victims to international crypto networks, with strong links to Cambodia-based entities.Persons with low incomes were allegedly used as conduits, their identities exploited to move large sums. Khammam police and tax investigators traced transactions amounting to Rs 547 crore through interconnected accounts.Documents reviewed by TOI, including Khammam police reports, findings from the Hyderabad income tax foreign assets investigation unit, and crypto wallet flow analysis, point to a consistent pattern. Funds siphoned from victims were routed through bank accounts of ordinary citizens, converted into USDT, moved across private wallets, and ultimately sent to deposit wallets associated with Huione Pay, a network that has drawn international scrutiny over money laundering concerns.Investigators say a significant share of cybercrime cases in Telangana—nearly 70%—have links to Cambodia, where large-scale scam centres are believed to be operating. Records reveal a striking mismatch: Individuals with modest means—farmers, delivery workers and unemployed youth—appearing as account holders in high-value transactions far beyond their financial capacity.Blockchain analysis using the Arkham Intelligence platform—which links wallet activity to identifiable entities—indicates that once funds entered the banking system, they were layered through private wallets before being routed outward.A five-page FIR registered at VM Banjar police station in Khammam on Dec 24, 2025, named several accused, including Udathaneni Vikas Chowdary, Potru Praveen, Potru Manoj Kalyan, Morampudi Chinna Keshavulu, and Junjunuri Shivakrishna, in a cheating and cybercrime case.According to the complaint, an unemployed man from Sathupalli mandal was lured with promises of a job or business opportunity and persuaded to open bank accounts. He later lost control of his mobile numbers, online banking credentials, debit cards and even blank signed cheques. The FIR alleges that funds obtained by defrauding victims in India and abroad were routed through such accounts before being transferred to entities linked to Extrika Group and associates.The Khammam police remand report highlights the scale of the alleged misuse. Among the transactions cited were Rs 114 crore in accounts linked to Kalyan and Rs 80.41 crore tied to Vikas, contributing to the total Rs 547 crore tracked across accounts.The next stage of the trail emerges from crypto wallet flow and tax records. After obtaining wallet addresses from official documents, TOI examined blockchain data through Arkham Intelligence, and the analysis suggests a tightly controlled system in which funds were converted into USDT and circulated within a closed network before being pushed outward.Tax records describe significant internal movement among three individuals—the assessee Vikas, his wife Nagapriya Boppana, and his father-in-law Boppana Khadar Babu—stating that “most of the P2P transactions” occurred within this group. Investigators said the assessee failed to explain the source of funds used for large USDT purchases, could not reconcile Binance records with bank statements, and did not disclose the private wallets receiving the transfers.A ‘particular pattern’ was identified. USDT was accumulated over weeks and then transferred—often through multiple intermediary wallets—to Huione Pay deposit addresses. Investigators said the scale was substantial. Records show that 29,40,542 USDT was purchased, with 5,39,842.91 USDT (valued at Rs 4.87 crore) treated as unexplained investment for FY 2022-23, and 24,00,699.05 USDT (valued at Rs 22.65 crore) similarly flagged for FY 2023-24. Total bank credits of Rs 16.62 crore were also identified over three financial years.
