Indian National Sentenced to 5 Years for $20 Million Crypto Fraud via Fake Coinbase Pro Website

Indian National Sentenced for $20 Million Scheme

Chirag Tomar, a 31-year-old Indian citizen, was sentenced to 60 months in prison for masterminding a fraudulent scheme that netted over $20 million from hundreds of unsuspecting victims.

Chirag Tomar was sentenced to 60 months.

The U.S. District Judge Kenneth D. Bell imposed the sentence, which will be followed by two years of supervised release.

Dena J. King, the U.S. Attorney for the Western District of North Carolina, announced the verdict on 17 October 2024, shedding light on the magnitude of Tomar’s cybercrimes.

How Did the Fraud Happen?

The fraudulent activities, which began in June 2021, involved Tomar and his co-conspirators using deceptive methods to impersonate the well-known cryptocurrency exchange, Coinbase.

By creating fake websites designed to mimic the legitimate Coinbase platform, they lured victims into providing their login credentials.

“Spoofing,” a common tactic in cybercrime, was employed to disguise the fraudulent site’s URL, tricking users into thinking they were interacting with a trusted source.

Tomar and his team crafted a counterfeit website that closely resembled the authentic Coinbase Pro site, located at “Pro.Coinbase.Com.”

They registered a similar URL, CoinbasePro.Com, and built a fraudulent interface that appeared genuine.

Victims were often met with alarming messages, such as their accounts being locked, prompting them to call a number to reach a "customer service representative."

Many victims fell for this ruse, inadvertently disclosing their two-factor authentication codes.

What Were the Consequences for Victims?

Victims found themselves victimised through various means.

For instance, one victim from the Western District of North Carolina attempted to access his Coinbase account via the spoofed website and was met with a notice that his account was locked.

When he called the fake representative, he was tricked into revealing his two-factor authentication information.

As a result, fraudsters accessed his real account and stole cryptocurrency worth over $240,000.

Once Tomar gained access to these accounts, he swiftly transferred the stolen cryptocurrency into wallets under his control.

Court documents reveal that he manipulated the stolen assets, converting them into different cryptocurrencies and transferring them among various wallets to obscure their origins.

Ultimately, these funds were converted into cash and shared among Tomar and his accomplices.

The Lavish Lifestyle Funded by Crime

Court filings indicate that Tomar used the stolen funds to finance a luxurious lifestyle, purchasing high-end items such as Audemars Piguet watches and luxury cars, including Lamborghinis and Porsches.

He also indulged in extravagant trips to exotic destinations like Dubai and Thailand, showcasing a stark contrast between his criminal activities and lavish expenditures.

How Was Tomar Caught?

The web of deceit unravelled on 20 December 2023, when Tomar was arrested at Atlanta airport upon entering the United States.

After a thorough investigation led by the U.S. Secret Service and valuable assistance from the FBI in Nashville, Tomar pleaded guilty to wire fraud conspiracy on 20 May 2024.

He remains in federal custody and will soon be transferred to a facility managed by the Federal Bureau of Prisons.