Indian National Faces Five Years in Jail for $20M Crypto Fraud

A citizen of India has been sentenced to five years in prison for orchestrating a crypto fraud that stole over $20 million from hundreds of victims worldwide, including those in the United States.

U.S. District Judge Kenneth D. Bell handed down the decision to Chirag Tomar, 31, who also received two years of supervised release following his prison term. This was announced by Dena J. King, U.S. Attorney for the Western District of North Carolina.

The sentencing follows Tomar’s involvement in a sophisticated scheme where he and his co-conspirators created fake websites. They mimicked Coinbase, one of the largest cryptocurrency exchange platforms, to deceive victims into revealing their account details. “This sentencing demonstrates our commitment to bringing cybercriminals to justice, no matter where they operate,” said U.S. Attorney King.

Jason Byrnes, Special Agent in Charge of the U.S. Secret Service’s Charlotte Field Office, joined U.S. Attorney King in announcing the sentencing.

Crypto Fraud Scheme Targeted Global Investors

According to court documents, Tomar and his team began their fraudulent activities in June 2021, using a technique known as “spoofing.” Spoofing involves tricking victims by disguising malicious websites or emails to look like trusted sources. In this case, the group set up a fraudulent version of Coinbase’s “Pro” exchange platform. They used a similar web address, CoinbasePro.com, instead of the legitimate URL, Pro.Coinbase.com.

Victims who tried to access their accounts on the spoofed website received prompts to enter their login details, including two-factor authentication codes.

In many cases, the fraudsters also impersonated Coinbase customer service representatives to further manipulate victims into giving remote access to their computers or providing sensitive information over the phone. Once inside, the criminals swiftly transferred cryptocurrency from the victims’ legitimate Coinbase wallets to accounts they controlled.

Western North Carolina Victim Lost Over $240,000

In one incident in February 2022, a victim from North Carolina tried logging into his Coinbase account through the fraudulent website, then later found out that his account was locked. The fake website directed him to contact a so-called Coinbase representative, who tricked him into revealing his authentication codes. The scammers then accessed his account, stealing crypto valued at over $240,000.

In this case, once the stolen cryptocurrency was in their possession, Tomar and his associates converted it into other digital currencies and moved the funds between various wallets they controlled. Tomar eventually converted the stolen cryptocurrency into cash and used the funds to support his extravagant lifestyle, purchasing luxury watches, high-end vehicles like Lamborghinis and Porsches, and traveling to destinations such as Dubai and Thailand.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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