A 31-year-old Indian national, Chirag Tomar, has been sentenced to 60 months in prison for orchestrating a $20 million cryptocurrency fraud scheme. Tomar and his co-conspirators created fake cryptocurrency exchange websites mimicking Coinbase, specifically its “Pro” version, deceiving hundreds of victims worldwide, including in the United States.
Massive Cryptocurrency Fraud Unveiled
The fraudulent operation, which started in June 2021, involved “spoofing,” a cybercrime technique where fake websites were designed to resemble trusted platforms. Tomar and his team created a fake website with a URL similar to the legitimate Coinbase Pro website, “CoinbasePro.com,” luring unsuspecting users into entering their login credentials. In some cases, victims were tricked into providing two-factor authentication (2FA) codes, granting the fraudsters access to their legitimate Coinbase accounts.
Once access was gained, Tomar swiftly transferred victims’ cryptocurrency holdings into wallets under his control. These funds were then converted into other cryptocurrencies and moved between numerous wallets, eventually being cashed out by Tomar and his associates.
A Victim from North Carolina Targeted
In February 2022, a victim from the Western District of North Carolina attempted to log into their Coinbase account through the spoofed website. The victim received a fake notification claiming their account was locked, prompting them to call a fake Coinbase representative. During the call, the victim unknowingly provided their 2FA information, which allowed the fraudsters to steal over $240,000 worth of cryptocurrency from the victim’s Coinbase wallet.
Lavish Lifestyle Funded by Fraud
Court documents reveal that Tomar used the stolen cryptocurrency to fund a lavish lifestyle, purchasing high-end luxury watches, including Audemars Piguet, and cars such as Lamborghinis and Porsches. He also made frequent trips to destinations like Dubai and Thailand.
Tomar was arrested at Atlanta International Airport in December 2023. After pleading guilty to wire fraud conspiracy in May 2024, he was sentenced to 60 months in prison, followed by two years of supervised release. Tomar remains in federal custody and will soon be transferred to a federal prison.
Cryptocurrency Scams on the Rise
This case highlights the growing threat of cryptocurrency fraud and the importance of cybersecurity awareness. Fake websites mimicking trusted exchanges continue to be a significant risk for crypto users. Always verify the legitimacy of URLs and avoid sharing sensitive information with unknown sources.
The U.S. Secret Service, in partnership with the FBI, played a key role in investigating and bringing this case to justice.
