- An Indian national has been sentenced to prison for orchestrating a $20 million fraud scheme involving fake cryptocurrency platforms.
- The scheme targeted victims by creating websites that mimicked legitimate cryptocurrency exchanges, luring them into transferring funds.
- Chirag Tomar has received a five-year prison sentence for his crimes
An Indian national has been sentenced to prison for his role in a $20 million scheme involving fake cryptocurrency investment platforms. Chirag Tomar deceived hundreds of victims by creating websites that closely resembled legitimate cryptocurrency exchanges and, along with his associates, stealing the money that was sent to them. The gang primarily targeted Coinbase Pro, where they amassed 542 victims between June 2021 and December 2023.
Fake Website Ring Busted by Secret Service
The fake crypto exchange ring was busted by the US Secret Service, which uncovered damning evidence linking Tomar to the operation, chiefly because he made the mistake of using an email account under his real name to communicate with other members of the group. He also kept meticulous records of victims and stolen funds, which proved instrumental in his identification.
Additionally, Tomar’s online searches for terms like “fake Coinbase page” and “how to take money from Coinbase without OTP” further incriminated him. Remarkably, Tomar utilized the same email address to apply for his US travel visa. On December 20, 2023, Tomar was arrested at the Atlanta airport while trying to enter the United States, pleading guilty to wire fraud four months later.
Scammers Stole Log In Details
The operation primarily targeted U.S. residents, including those in North Carolina, where law enforcement officials have been actively investigating financial fraud cases. “These scams took advantage of unsuspecting victims who believed they were making real investments in cryptocurrency,” said a law enforcement officer involved in the case.
The scammers recorded the login details of users and utilized them to access their victims’ real Coinbase Pro accounts. They also collected funds sent to the fake platforms, quickly laundering them through various channels, including cryptocurrencies, and used them to fund personal expenses such as luxury travel and goods. Authorities noted that part of the scheme’s success relied on the increasingly sophisticated tactics employed by the criminals, making it difficult for average investors to discern the fraud.
U.S. authorities have continued to warn the public about the growing threat posed by cryptocurrency scams. Law enforcement officials also encouraged people to be vigilant when engaging in cryptocurrency investments, advising potential investors to thoroughly research platforms and verify their legitimacy before transferring any funds.
