Cyber Crime
Indian Fraudster Orchestrates Rs 165 Crore Crypto Theft Through Fake Coinbase Sites
An Indian national, Chirag Tomar, has been sentenced to five years in prison for leading a Rs 165 crore cryptocurrency fraud scheme. Using fake Coinbase websites, Tomar and his team tricked victims into providing login credentials, which allowed them to steal millions in cryptocurrency. U.S. authorities revealed that the scam funded Tomar’s luxury lifestyle, including high-end vehicles and international travel.
A global cryptocurrency fraud scheme, masterminded by Indian national Chirag Tomar, has led to the theft of over Rs 165 crore (approx. $20 million) from unsuspecting victims worldwide. The scam involved spoofed websites mimicking the popular cryptocurrency exchange, Coinbase, deceiving users into surrendering their login credentials and two-factor authentication codes. U.S. authorities revealed how Tomar and his accomplices used advanced tactics, including remote desktop access and impersonation of Coinbase support staff, to drain victims’ accounts and convert stolen cryptocurrency into cash.
Scam Overview
The fraudulent operation, which began in June 2021, targeted both professional and retail investors by creating fake versions of Coinbase Pro, the platform’s trading platform for professional investors. Victims were lured into these fake sites using URLs that closely resembled legitimate ones. Once users entered their credentials, the fraudsters intercepted the data. In some instances, victims were manipulated into installing remote access software, giving the criminals full control over their devices and access to their actual Coinbase accounts.
Posing as Coinbase customer service agents, the scammers would either direct victims to call fake support lines or make unsolicited calls themselves, convincing their targets to share crucial two-factor authentication codes. These codes allowed the criminals to move stolen funds into wallets under their control, which they swiftly transferred across multiple wallets to launder the cryptocurrency before converting it to cash.
High-End Lifestyle Funded by Crime
Court records show that the proceeds from these crimes were used by Chirag Tomar to fund a lavish lifestyle. The stolen funds enabled the purchase of luxury vehicles, expensive watches, and international travel. The U.S. Department of Justice (DOJ) has stated that Tomar and his co-conspirators were responsible for millions in losses to hundreds of victims, many of whom were located in the U.S.
In one notable case from February 2022, a North Carolina resident lost over Rs 2 crore (approx. $240,000) in cryptocurrency after mistakenly logging into a fake Coinbase site. Believing their account had been locked, the victim contacted a fraudulent support representative and unknowingly provided their two-factor authentication codes.
Justice and Sentencing
Tomar was apprehended at Atlanta airport in December 2023, and in May 2024, he pleaded guilty to conspiracy to commit wire fraud. He was sentenced to five years in federal prison for his role in orchestrating the scheme. The DOJ has commended the joint efforts of the U.S. Secret Service and the FBI in investigating and ultimately dismantling the criminal operation.
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