Indian Fraudster Orchestrates Rs 165 Crore Crypto Theft Through Fake Coinbase Sites

Chirag Tomar, has been sentenced to five years in prison for leading a Rs 165 crore cryptocurrency fraud scheme. 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. 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. 

They used to set up mirror websites that closely resembled Coinbase's legitimate platform in terms of design, functionality, and branding. Unsuspecting users were directed to these fraudulent sites through phishing emails, fake ads, and other malicious tactics. Once on the site, users were deceived into inputting their login credentials and other sensitive information. 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.

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.

 

Cryptocurrency exchanges, including Coinbase, are likely to enhance their security protocols and user education initiatives to prevent such incidents in the future. Regulators and policymakers may also introduce stricter measures to safeguard users from these increasingly common frauds. This heist is yet another reminder of the risks associated with digital assets, underscoring the importance of cyber hygiene and the need for robust security practices in the ever-evolving landscape of cryptocurrency trading.