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Tomar was convicted for creating a fraudulent website that closely mimicked Coinbase Pro, a well-known crypto exchange platform.
Key Notes
Chirag Tomar was sentenced to 5 years for a $20 million crypto fraud involving a fake Coinbase website.Tomar and his team impersonated Coinbase representatives, stealing over $240,000 from a North Carolina victim.After his prison term, Tomar will face two years of supervised release for his wire fraud conspiracy.In a significant crackdown on crypto fraud, Chirag Tomar, a 31-year-old Indian national, has been sentenced to five years in prison for a $20 million scam. The United States Department of Justice announced the verdict on October 17, 2024, highlighting the severity of cybercrimes targeting digital currencies.
Tomar was convicted for creating a fraudulent website that closely mimicked Coinbase Pro, a well-known crypto exchange platform. Starting around June 2021, he and his associates launched this spoof site to deceive hundreds of victims globally.
By cloning Coinbase’s interface and using a similar URL, they tricked users into exposing their login information and two-factor authentication codes.
Impersonation of Coinbase Service
The scheme didn’t stop at just a fake website. Tomar and his team went further by impersonating Coinbase customer service representatives. They reached victims via phone, convincing them to provide additional authentication details or enable remote desktop access.
These tactics allowed the criminals to transfer the stolen crypto to wallets they controlled. The funds were then laundered through multiple addresses, converted into different crypto assets, and eventually cashed out. One victim from North Carolina alone lost over $240,000 to the fraudulent activities.
Tomar’s lavish lifestyle was a testament to the success of his deceitful operations. He used the stolen funds to purchase luxury items such as Audemars Piguet watches and high-end cars like Lamborghinis and Porsches. Additionally, he funded extravagant trips to destinations like Dubai and Thailand, showcasing the extent of his financial gains from the scam.
US District Judge Kenneth D. Bell delivered the sentencing, emphasizing the need for stringent measures against cyber fraud. Following his prison term, Tomar will undergo two years of supervised release. The judge’s decision shows the judiciary’s commitment to combating financial crimes in the digital age.
Tomar Pleads Guilty to Wire Fraud Conspiracy
Tomar was captured at the Hartsfield-Jackson Atlanta International Airport on December 20, 2023, shortly after entering the United States. His arrest followed a comprehensive investigation led by the US Secret Service, with significant assistance from the FBI in Nashville. On May 20, 2024, Tomar pleaded guilty to wire fraud conspiracy, admitting his role in the elaborate scheme.
US Attorney Dena J. King commended the efforts of the investigative teams, stating that the US Secret Service played a pivotal role for solving this complex fraud, and we extend our gratitude to the FBI for their invaluable support. The collaboration between various federal agencies was crucial in dismantling the network behind the crypto scam.
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With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
