Piracy Racket Causing Rs 3,700-Crore Loss To Telugu Film Industry, Busted

A sophisticated, multi-state movie piracy racket has been busted with the arrest of five men allegedly responsible for leaking high-profile films and causing estimated losses of Rs 3,700 crore to the Telugu film industry.

The operation by the Hyderabad Cyber Crime Police uncovered a complex network that used both advanced server hacking and in-theatre cam-cording, with all transactions routed exclusively through cryptocurrency.

The arrested individuals are linked to the illegal release of several high-profile and upcoming titles, including HIT 3, Single, Kubera, Hari Hara Veera Mallu, and Game Changer, which were distributed on notorious piracy sites such as 1TamilBlasters, Movierulz, and 1Tamil.
The investigation spanned multiple states and exposed various specialized roles within the ring.

The kingpin of the racket was Cyril Raj from Tamil Nadu, identified as the mastermind behind the piracy site 1TamilBlasters. He ran the servers from abroad and is responsible for uploading over 500 films since 2020. His earnings exceeded Rs 2 crore in cryptocurrency over this period, with monthly income from betting apps alone sometimes reaching Rs 9 lakh.

Ashwani Kumar from Bihar specialised in hacking digital studio servers to steal pristine HD copies of films before their official release. He reportedly sold these stolen copies for a flat rate of $800 per movie. The police noted his extreme security measures, which included 22 CCTV cameras around his residence.

Jana Kiran, operating from Hyderabad, focused on cam-cording over 100 Telugu films directly from theatres using an iPhone, selling the inferior copies for $300-400 each.

The distributor was Sudhakaran from Tamil Nadu. He recorded and rapidly uploaded 35 Tamil and Telugu films, utilising the swift distribution channels of Telegram.

The Financial Handler was Arsalan Ahmed from Goa, who managed the crucial technical and financial logistics, overseeing file uploads, operating the crypto wallets, and maintaining the Telegram distribution channels.

The most significant finding, however, was the operation's financial architecture.

The accused completely bypassed traditional banking systems. All payments between the leakers, piracy site operators and advertisers, were routed exclusively through cryptocurrency, primarily Bitcoin and Tether a stablecoin pegged to the US dollar. 

For instance, producers of piracy sites or betting app promoters would send the $800 fee for a leaked HD copy to Ashwani Kumar's digital wallet in Bitcoin.

Cyril Raj received a base of $10,000 per month in crypto from online betting and gaming applications that sponsored and advertised heavily on his piracy portals, with his demands sometimes reaching $30,000 monthly.

The cryptocurrency was moved into digital wallets (such as Binance and Blockchain.com) and subsequently converted into Indian Rupees using sophisticated crypto-to-cash middlemen. The police noted that the entire operation was effectively monetised through this crypto trail. 

The Telugu film industry, already struggling against rampant piracy, is welcoming the breakthrough, with officials emphasising the need for stricter cyber laws to tackle the evolving, crypto-funded nature of these major film leaks.

The city police chief has set out practical precautions for each stakeholder and emphasized the importance of robust cyber-security practices.

Theatre owners were urged to strengthen on-ground vigilance, restrict the use of recording devices, and adopt advanced surveillance to deter in-hall piracy attempts. Production units were told to maintain a strict chain of custody for content and robust forensics, water markings.