Indian Man Sentenced to Five Years for $20 Million Coinbase Fraud Scheme

1 month ago 33839

ARTICLE AD BOX

Key Takeaways

Tomar’s fraudulent activities generated over $20 million in illegal profits
In addition to his five-year sentence, Tomar will serve two years of supervised release following his prison term

Chirag Tomar, a 31-year-old Indian national, has been sentenced to five years in prison for his role in a $20 million cryptocurrency fraud scheme that targeted Coinbase users globally. The sentence was handed down by U.S. District Judge Kenneth D. Bell in North Carolina after Tomar pleaded guilty to conspiracy to commit wire fraud earlier this year.

The fraud, which began in June 2021, involved Tomar and his co-conspirators creating fake websites that closely resembled Coinbase, a popular cryptocurrency exchange. These spoofed sites were designed to deceive users into entering their login credentials and two-factor authentication codes. Once this sensitive information was obtained, the scammers accessed victims’ cryptocurrency accounts, drained the funds, and transferred them into wallets under their control.

In addition to the fake websites, Tomar and his associates posed as Coinbase customer service representatives, using phone calls to extract more details from victims. One victim from North Carolina reported losing more than $240,000 after falling prey to the scam. In addition to his five-year sentence, Tomar will serve two years of supervised release following his prison term.

Tomar’s fraudulent activities generated over $20 million in illegal profits. The U.S. Department of Justice reports that Tomar used the stolen funds to finance a lavish lifestyle, which included the purchase of luxury vehicles like Lamborghinis and Porsches, expensive watches such as Audemars Piguet, and extravagant trips to destinations like Dubai and Thailand.

Tomar was arrested on December 20, 2023, at Hartsfield-Jackson Atlanta International Airport when he entered the U.S. He has been in federal custody since his arrest and will remain in custody until he is transferred to a designated federal prison.