🌎 Indian National Gets 5 Years for $20M Crypto Fraud Using Fake Sites

An Indian national has been sentenced to five years in prison after being convicted of stealing more than $20 million in a crypto fraud scheme involving fake crypto websites.

Conviction and Sentencing

U.S. District Judge Kenneth D. Bell sentenced Chirag Tomar, a 31-year-old Indian citizen, to 60 months in prison. The U.S. Justice Department confirmed the sentencing. In addition to his prison term, Tomar will serve two years of supervised release following his sentence.

Details of the Fraud Scheme

According to Dena J. King, U.S. Attorney for the Western District of North Carolina, Tomar stole over $20 million from hundreds of people by duping them into using fake or “spoofed” websites. The scheme dates back to June 2021.

Methods Used in the Fraud

The prosecution stated that Tomar and his co-conspirators targeted victims globally, including in the United States, by spoofing U.S.-based crypto exchange Coinbase. Spoofing is a cybercrime where a malicious actor uses disguise to convince victims they are using an official or trusted site, which is actually fake. In this case, Tomar and others used a fake URL of Coinbase’s crypto exchange site “Pro.Coinbase.Com” by creating the URL CoinbasePro.Com. This fraudulent website was designed to trick unsuspecting victims into providing their authentication details on Coinbase.

Using remote desktop software, the fraudsters stole from victims, with some cases involving impersonation of Coinbase customer support staff. Court documents reveal that a North Carolina crypto user lost more than $240,000 in February 2022.

Use of Stolen Funds

Tomar used the stolen funds to buy luxury vehicles and finance lavish trips to Dubai and other locations. He was arrested in December 2023 and pleaded guilty to charges including wire fraud conspiracy in May 2024.

Related Crypto Fraud Cases

Earlier this week, a court in the U.S. sentenced a 46-year-old man to 20 years in prison over a crypto fraud case. Meanwhile, a German man facing a $150 million crypto fraud case in New York is on the run after skipping a hearing.

Protecting Yourself from Crypto Scams

To avoid falling victim to similar schemes, consider these tips:

Verify URLs: Always double-check the URL of the website you are using, especially for financial transactions.
Enable Two-Factor Authentication: Use two-factor authentication for added security on your crypto accounts.
Be Skeptical of Unsolicited Support: Be cautious if you receive unsolicited messages or calls claiming to be from customer support.
Use Trusted Platforms: Stick to well-known and reputable crypto exchanges and wallets.

Stay informed and vigilant to protect your investments in the cryptocurrency space.