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Hyderabad Police bust ₹3,700 cr piracy ring; betting Ads fuelled ₹9 lakh monthly revenue
Police revealed that the business model depended less on user subscriptions and more on advertisements from betting companies. The accused was on the payroll of platforms like 1xBet, Pari Match, Raj Bet, and Kora Bet.
While viewers accessed pirated films for free, they were constantly bombarded with banner ads, pop-ups, and embedded promotions of betting and gaming apps.
Hyderabad Cyber Crime Police have uncovered a sprawling movie piracy network that not only caused losses of an estimated ₹3,700 crore to the Telugu film industry but also exposed how piracy websites are heavily bankrolled by online betting platforms through aggressive advertising.
In a multi-state operation, five individuals were arrested for leaking high-profile films such as HIT 3, Single, Kubera, Hari Hara Veera Mallu, and Game Changer. The racket thrived on a dual engine of illicit film leaks and advertising revenues from betting apps, all funneled through cryptocurrency channels to bypass banking oversight.
The kingpin, Cyril Raj from Tamil Nadu, ran the notorious portal 1TamilBlasters, one of the biggest piracy platforms in South India. Police revealed that his business model depended less on user subscriptions and more on advertisements from betting companies. Cyril was on the payroll of platforms like 1xBet, Pari Match, Raj Bet, and Kora Bet, who paid him close to ₹9 lakh per month for ad placements on his piracy websites.
“Since 2020, Cyril has uploaded more than 550 films. His revenues came largely from betting platforms advertising aggressively on piracy sites. He operated ten crypto wallets and three bank accounts, routing all transactions outside the traditional banking system,” said Hyderabad Police Commissioner C.V. Anand.
While viewers accessed pirated films for free, they were constantly bombarded with banner ads, pop-ups, and embedded promotions of betting and gaming apps. The lure of quick money in online gambling became the hidden commercial engine keeping piracy portals afloat.
Specialized Roles, Digital Advertising Backbone
Each member of the syndicate played a specialized role:
Ashwani Kumar (Bihar): hacked digital studio servers for pristine HD prints, sold at $800 each.
Jana Kiran (Hyderabad): cam-corded over 100 Telugu films with iPhones, sold inferior copies for $300–$400.
Sudhakaran (Tamil Nadu): distributed 35 Tamil and Telugu films via Telegram.
Arsalan Ahmed (Goa): acted as financial handler, operating crypto wallets and managing the digital advertising pipelines.
At the center was Cyril Raj, who received a base income of $10,000–30,000 per month in cryptocurrency from betting advertisers and promoters. His piracy portals became ad platforms disguised as movie download sites—ensuring steady traffic for betting companies seeking young, digital-first audiences.
Investigations revealed that all financial flows—whether payments to hackers, fees for leaked films, or ad revenues from betting platforms—were conducted in Bitcoin and Tether (USDT). Advertisers, often offshore betting companies, paid directly into digital wallets. These were later liquidated into Indian Rupees using middlemen, making enforcement nearly impossible.
The police highlighted that while piracy hurt the film industry, the larger challenge was how crypto-funded advertising by betting apps has created a sustainable ecosystem for piracy networks.
The Telugu film industry welcomed the breakthrough, but stakeholders warned that the deep-rooted link between piracy and betting advertisements needed urgent regulatory scrutiny.
“Piracy portals survive because of advertising revenues. Unless we regulate illegal betting ads and crypto payments, the fight against piracy will remain incomplete,” said a senior industry official.
Police have also urged theatre owners and production houses to adopt stricter security, including advanced surveillance, forensic watermarking, and tighter digital custody of content.
The bust has once again drawn attention to how illegal advertising dollars—from betting apps in particular—are underwriting India’s movie piracy economy, transforming a cybercrime issue into a larger advertising and regulatory challenge.
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