A 31-year-old Indian national, Chirag Tomar, has been sentenced to five years in a U.S. federal prison after being convicted of orchestrating a crypto fraud scheme that defrauded victims of more than $20 million. The U.S. Justice Department announced the sentencing, which also includes two years of supervised release following Tomar’s prison term.
The Fraud Scheme
According to the U.S. Attorney for the Western District of North Carolina, Dena J. King, Tomar’s criminal activities revolved around a scheme involving fake cryptocurrency websites, also known as “spoofed” sites. The scam, which ran from June 2021, targeted victims both in the U.S. and globally by impersonating well-known cryptocurrency exchanges, specifically Coinbase.
Tomar and his co-conspirators created a fake URL, CoinbasePro.Com, closely resembling Coinbase’s official trading platform Pro.Coinbase.Com. Unsuspecting victims, believing they were interacting with the legitimate site, were tricked into providing their authentication details. The cybercriminals then used these credentials to steal from the victims, often gaining access to their accounts via remote desktop software.
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How the Scam Unfolded
The scammers went as far as impersonating Coinbase customer support staff to further deceive their victims. One of the victims, a North Carolina resident, reported losing more than $240,000 in February 2022 after falling prey to the fraudulent scheme.
The funds stolen by Tomar were used to finance a lavish lifestyle, including the purchase of luxury cars and extravagant trips to Dubai and other exotic locations.
Arrest and Sentencing
Tomar was arrested in December 2023 and later pleaded guilty to wire fraud conspiracy in May 2024. U.S. District Judge Kenneth D. Bell handed down the 60-month prison sentence, with an additional two years of supervised release. Tomar’s sentencing is the latest in a series of crackdowns on cryptocurrency-related fraud schemes.
Broader Implications
Crypto fraud cases have been on the rise, with the FBI reporting that Americans lost over $5.6 billion in cryptocurrency-related scams in 2023 alone. Tomar’s conviction adds to a growing list of recent high-profile cases. Just earlier this week, a U.S. court sentenced a 46-year-old man to 20 years in prison for his involvement in another crypto fraud case. Additionally, a German man facing a $150 million crypto fraud case in New York has reportedly fled after skipping a court hearing.
As cryptocurrency continues to grow in popularity, so does the complexity and scale of fraud schemes, highlighting the importance of increased vigilance and regulatory oversight in the digital asset space.
