Hyderabad bizman loses Rs 1.5 crore to crypto fraud | Hyderabad News – Times of India

HYDERABAD: A city-based businessman, who invested in crypto currency, lost 1.49 crore after his account with a crypto exchange allegedly got compromised. He approached cyber crime cops to lodged a complaint.
The victim lodged a complaint with the Cyber Crime sleuths, who registered a criminal case under Sections 420 (cheating) of the IPC and IT Act. The victim, who was aiming to earn quick profits, decided to test his luck and bought bitcoins in the last week of October.He claimed that he bought 4.98 BTC worth 1.49 crore from aDubai-based person. For making the payment, he even got a confirmation. The victim took the help of his friend in Dubai to arrange money and the amount was paid in UAE dirhams.

After the transaction, he found that the bitcoins got transferred into his blockchain wallet. An hour later, however, when he re-verified his wallet. he found that the balance in his wallet was zero. At the same time, he got an email from the blockchain.com informing that someone ‘recovered’ his wallet using seed words (a series of words generated by cryptocurrency wallet to give access to the crypto associated with that wallet).
“It was using the 12 secret code words someone had hacked my account. It was to a particular wallet the bitcoins were transferred from my wallet,” the complainant, who is from Borabanda, told police. He also shared the alphanumeric account into which the bitcoins were transferred without his knowledge. Officials said that earlier the victim had made two transactions while purchasing bitcoins. In the first transaction, he had bought a coin, while in the second transaction he bought the remaining coins. The complainant suspects that someone who was aware about his transactions was behind the illegal transfer of bitcoins.