Hyderabad Police Bust Major Movie Piracy Racket Involving Hacking and Crypto
Hyderabad's Cybercrime Police have arrested five key members of a sophisticated, multi-state movie piracy network responsible for leaking major Tollywood films on their release day. The investigation revealed the gang used advanced methods, including hacking into digital media company servers to steal HD copies and using camcorders in theatres. The network, which allegedly earned nearly ₹2 crore in cryptocurrency since 2020, used encrypted channels and foreign servers to conceal its activities, impacting films across multiple Indian languages and Hollywood.
Unpacked:
The investigation began after a complaint from the Telugu Film Chamber of Commerce about illegal uploads. Police traced the operation by arresting individuals who recorded films in cinemas, then following links to key organizers who orchestrated hacks and uploads, using surveillance of cryptocurrency payments and digital communications to map the network’s hierarchy and operations.
Movie piracy has caused massive financial losses; in 2023, the Indian entertainment industry lost around ₹22,400 crore, with the Telugu film industry (Tollywood) alone losing about ₹3,700 crore in 2024. Piracy not only affects revenue but also discourages investment and impacts jobs.
The network used advanced techniques such as hacking into digital media company servers to steal HD copies, recording films in theatres, using encrypted channels for communication, and storing content on foreign servers to conceal their activities and avoid detection.
Industry leaders urge stricter legal action, especially holding digital intermediaries—like hosting firms and content delivery networks—accountable. There is also a push for coordinated government and industry measures, including technological anti-piracy tools and increased enforcement to deter both perpetrators and facilitators.