TL;DR
- An Indian citizen has been sentenced to five years in prison for crypto fraud using fake websites imitating Coinbase.
- The fraud allowed him to steal more than 20 million dollars from hundreds of victims around the world.
- He used the stolen money to fund a lavish lifestyle, including the purchase of expensive watches and luxury vehicles.
An Indian citizen, Chirag Tomar, has been sentenced to five years in prison for leading a crypto fraud scheme that involved creating fake websites imitating the well-known cryptocurrency exchange Coinbase.
According to information provided by the United States Attorney’s Office for the Western District of North Carolina, Tomar and his accomplices managed to deceive hundreds of people worldwide, stealing more than $20 million through the use of advanced impersonation techniques.
The scheme began operating in June 2021, when Tomar and his team created a fake website very similar to Coinbase Pro, using a misleading URL that took users to a fraudulent page.
Victims, upon attempting to access their accounts, were redirected to the fake site where they unwittingly provided their login credentials and authentication codes.
In other cases, Tomar and his accomplices posed as Coinbase customer service representatives, tricking victims into providing their personal data or allowing remote access to their devices, making it easier to steal cryptocurrency from their legitimate accounts.
Once they had access to the accounts, the scammers transferred the cryptocurrencies to wallets under their control, moving the funds between different wallets to make them harder to trace and convert them into cash.
Tomar was found to have used the stolen money to purchase luxury items such as Audemars Piguet watches, high-end vehicles such as Lamborghinis and Porsches, as well as to fund trips to exotic destinations such as Dubai and Thailand.
The Impact of Fraud and Legal Consequences
The fraud had a significant impact, affecting victims from different parts of the world, including one person in the Western District of North Carolina who lost more than $240,000 after being tricked by the fake site.
The victim was led to believe that his account was locked, and upon contacting a fake Coinbase representative, he provided the information necessary for the scammers to access his funds.
Chirag Tomar was arrested on December 20, 2023 at the Atlanta airport upon entering the United States and subsequently pleaded guilty to conspiracy to commit wire fraud in May 2024.
He is currently in federal custody and will be transferred to a federal prison facility to serve his 60-month sentence, followed by two years of supervised release.
The case was thoroughly investigated by the United States Secret Service, with support from the FBI in Nashville, highlighting the importance of interagency collaboration in the fight against cybercrime.
Tomar’s ruling sends a clear message about the serious legal consequences faced by those who engage in cryptocurrency fraud.
