The Enforcement Directorate (ED) has conducted searches in Delhi, Jaipur, and Mumbai in connection with a large-scale cryptocurrency fraud involving the alleged conversion of digital assets worth ₹600 crore and their subsequent transfer to beneficiaries.
The scam, orchestrated through spoofed websites mimicking legitimate cryptocurrency exchanges, has links to Chirag Tomar, an Indian national currently serving a prison sentence in the United States for a similar fraud.
The searches, conducted under the Foreign Exchange Management Act (FEMA), targeted individuals and entities suspected of being part of the laundering operation. According to the ED, fraudsters manipulated search engine results to promote fake websites that closely resembled trusted crypto trading platforms, deceiving unsuspecting users.
The Spoofing Mechanism
“The spoofed website appeared exactly similar to the trusted website except the contact details,” an ED official said.
Victims attempting to log in would receive an error message, prompting them to contact customer support— a number listed on the fraudulent website. The calls were routed to a call center allegedly run by Chirag Tomar, where operators gained access to users’ credentials and subsequently drained their cryptocurrency holdings.
Once stolen, the digital assets were transferred to private wallets, sold via LocalBitcoins.com, and converted to Indian currency through domestic exchanges. ED investigations found that approximately ₹15 crore was deposited into bank accounts linked to Tomar and his family. Several accounts have now been frozen, with ₹2.18 crore seized so far.
Who Is Chirag Tomar?
Chirag Tomar, 31, is a convicted fraudster serving a five-year prison sentence in the United States for orchestrating a $20 million crypto scam. He and his associates created spoofed versions of Coinbase Pro, deceiving users into providing their login credentials and two-factor authentication details.
Tomar’s scam, which began around June 2021, saw victims’ digital assets siphoned from their accounts and routed through multiple wallet addresses to evade detection. According to U.S. authorities, he also impersonated Coinbase customer support representatives, tricking users into granting remote access to their computers.
His arrest came in December 2023 at Atlanta’s Hartsfield-Jackson International Airport. In May 2024, he pleaded guilty to wire fraud conspiracy and was sentenced by a U.S. district judge in Charlotte, North Carolina, in October 2024.
The Department of Justice (DOJ) revealed that Tomar used stolen funds to finance a lavish lifestyle, purchasing luxury items such as Audemars Piguet watches, Lamborghinis, and Porsches, as well as funding extravagant trips to Dubai and Thailand.
A Widening Investigation
Following Tomar’s sentencing in the U.S., the ED launched its own probe into the Indian leg of the operation. The latest raids have further exposed how stolen crypto was funneled back into Indian financial systems, reinforcing concerns about money laundering through digital assets.
Authorities continue to trace the movement of illicit funds, and more bank accounts tied to the scam may face seizure.
Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by Harshajit Sarmah.
