Indian National Sentenced For $20 Million Fraud Scheme Involving Fake Cryptocurrency Exchange Websites
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- Chirag Tomar, an Indian national, was sentenced to 60 months in prison for stealing over $20 million through a spoofing scheme targeting Coinbase users globally.
- Tomar and his co-conspirators created fake websites mimicking Coinbase Pro, tricking victims into providing login credentials and stealing cryptocurrency.
An Indian citizen, Chirag Tomar, 31, was sentenced to 60 months in prison for orchestrating a cryptocurrency fraud scheme that defrauded victims of over $20 million. U.S. District Judge Kenneth D. Bell also ordered Tomar to serve two years of supervised release following his prison term. The announcement was made by U.S. Attorney Dena J. King of the Western District of North Carolina, alongside Jason Byrnes, Special Agent in Charge of the U.S. Secret Service’s Charlotte Field Office.
Court documents and the sentencing hearing revealed that Tomar, starting in June 2021, led a global “spoofing” operation, targeting hundreds of victims in the United States and abroad. Spoofing involves creating deceptive websites or email addresses that imitate legitimate sources. In this case, Tomar and his co-conspirators replicated the Coinbase Pro platform, a leading cryptocurrency exchange, to trick victims into providing login credentials.
The fraudulent scheme involved a fake website, “CoinbasePro.Com,” designed to resemble the authentic “Pro.Coinbase.Com” platform. Victims were lured into entering their account details, and in some cases, even allowed fraudsters to gain control of their computers via remote desktop software. The criminals, posing as Coinbase customer service agents, used this access to steal cryptocurrencies from victims’ legitimate Coinbase accounts.
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One victim from North Carolina fell prey to the scheme in February 2022. After attempting to log into his Coinbase account through the fake site, he was informed that his account was locked and was directed to call a phony Coinbase representative. The representative then obtained the victim’s two-factor authentication code and accessed his real Coinbase account, stealing over $240,000 in cryptocurrency.
Once Tomar and his associates gained control of the victims’ accounts, they quickly transferred the cryptocurrency to wallets under their control, converting the stolen assets into cash. Tomar used the illicit funds to fund a lavish lifestyle, purchasing luxury items such as Audemars Piguet watches, and Lamborghinis, and traveling to destinations like Dubai and Thailand.
Tomar was arrested in December 2023 at the Atlanta airport and pleaded guilty to wire fraud conspiracy in May 2024. He will remain in federal custody until transferred to a federal prison. The U.S. Secret Service led the investigation with assistance from the FBI in Nashville.
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