Indian National Receives 5-Year Prison Sentence
In a significant legal development, the US Attorney’s Office for the Western District of North Carolina announced the sentencing of an Indian national for a sophisticated crypto fraud scheme. The individual, Chirag Tomar, was sentenced to five years in prison for orchestrating a fraudulent operation that siphoned over $20 million by mimicking the popular crypto exchange platform, Coinbase.
US District Judge Kenneth D. Bell handed down the sentence to the 31-year-old, alongside a subsequent two-year period of supervised release. This sentence followed Tomar’s guilty plea in May to charges of wire fraud. Additionally, Tomar faced charges for conspiracy to commit wire fraud and money laundering, both of which carry potential sentences of up to 20 years each.
The US Secret Service tracked Tomar down through an email account linked to his real identity. Court documents revealed that Tomar used this email to communicate with accomplices and apply for a US travel visa. He meticulously documented his fraudulent activities on a spreadsheet, detailing the amounts stolen from each victim. He also used fake identity documents to open accounts on platforms like Binance.
Fake Coinbase Website Facilitates $20 Million Theft
The fraudulent activities began in June 2021, when Tomar and his accomplices created a counterfeit Coinbase Pro website. By using a URL that closely resembled the legitimate one, they successfully deceived over 500 victims into divulging sensitive login information over a two-year period.
Once victims accessed the fake site, they were tricked into sharing their login credentials and authentication details. Tomar and his team even impersonated Coinbase customer support to extract two-factor authentication codes. In some instances, victims were scammed into allowing “Coinbase representatives” to operate remote desktop software, granting the fraudsters access to their computers and accounts. This breach allowed Tomar to transfer crypto assets into wallets that he controlled.
One notable victim from the Western District of North Carolina suffered a loss of $240,000 due to this deceitful scheme. The court documents further disclosed that Tomar utilized the stolen funds to indulge in a lavish lifestyle, traveling extensively to destinations such as Dubai, Thailand, and London. He also purchased luxury items, including expensive watches and high-end vehicles like Lamborghinis and Porsches. His arrest came on December 20, 2023, at the Atlanta airport when he arrived in the US to visit family.
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Growing Concerns Over Crypto Scams
The case underscores the burgeoning issue of crypto fraud, with Coinbase recently issuing warnings to investors about emerging trends in the sector. As highlighted by Bitcoinist, the exchange noted an uptick in scams targeting Generation Z users on social media platforms like TikTok and Instagram. This trend points to a broader pattern of social media scams that prey on users of varying crypto expertise.
As phishing remains the most prevalent type of scam within the industry, users are advised to maintain vigilance regarding any suspicious online activity or requests. Awareness and caution are crucial in safeguarding against the growing threat of crypto scams.
