U.S. District Judge Kenneth D. Bell has sentenced Chirag Tomar, a 31-year-old Indian national, to five years in prison for orchestrating a $20 million cryptocurrency fraud scheme. The U.S. Department of Justice announced that Tomar, in addition to his 60-month sentence, will face two years of supervised release following his prison term.
Fraudulent Crypto Scheme Exposed
Tomar’s sentencing is the latest in a string of convictions linked to large-scale crypto fraud. According to Dena J. King, U.S. Attorney for the Western District of North Carolina, Tomar and his co-conspirators duped hundreds of victims globally through a sophisticated scheme involving fake cryptocurrency websites.
The scam began in June 2021 and primarily involved spoofing Coinbase, a well-known U.S.-based cryptocurrency exchange. Spoofing is a cybercrime tactic where attackers deceive victims by mimicking legitimate websites or services. In this case, Tomar and his team created a fraudulent version of Coinbase’s website, tricking users into thinking they were accessing the official platform.
Victims Targeted Worldwide
The perpetrators used a fake URL—CoinbasePro.Com—to impersonate the legitimate Coinbase site (Pro.Coinbase.Com). The fraudulent site enabled them to steal authentication details from unsuspecting users. Using remote desktop software, Tomar and his associates then gained access to victims’ crypto accounts and drained funds, often while pretending to be Coinbase customer support representatives.
According to court records, one North Carolina-based victim lost over $240,000 in February 2022 due to the scam.
Lavish Lifestyle Funded by Stolen Crypto
Authorities revealed that Tomar used the stolen funds to finance a lavish lifestyle, purchasing luxury vehicles and indulging in extravagant trips to Dubai and other international locations. Tomar was apprehended in December 2023 and pleaded guilty to wire fraud conspiracy charges in May 2024.
Global Crackdown on Crypto Crime
Tomar’s case is part of a broader crackdown on cryptocurrency-related fraud in the U.S. Earlier this week, a 46-year-old man received a 20-year sentence for involvement in a separate crypto fraud case. Meanwhile, a German man accused of orchestrating a $150 million crypto fraud in New York remains on the run after skipping a court hearing.
As authorities continue to pursue cyber criminals, these cases highlight the growing need for vigilance among crypto users and stricter enforcement against fraudulent schemes in the rapidly evolving digital finance space.
