U.S. Sentences Man to 5 Years in Prison for $20M Cryptocurrency Fraud

A U.S. District Court has sentenced Chirag Tomar, a 31-year-old Indian national, to five years in prison for orchestrating a large-scale cryptocurrency fraud, according to a recent announcement by the U.S. Department of Justice. Tomar will also face two years of supervised release after completing his sentence. U.S. Attorney Dena J. King, representing the Western District of North Carolina, revealed that Tomar swindled over $20 million from numerous victims through a sophisticated scheme that began in June 2021.

Prosecutors explained that Tomar, along with other conspirators, carried out a global fraud operation that included targeting U.S. citizens. They deceived victims by creating fake versions of the popular cryptocurrency exchange Coinbase, specifically using a fraudulent URL to replicate the legitimate exchange’s site.

Spoofing, the method employed by Tomar, involves cybercriminals creating convincing replicas of official websites to mislead individuals into believing they are interacting with a legitimate platform. In this case, Tomar and his associates used a counterfeit URL, "CoinbasePro.Com," mimicking the legitimate "Pro.Coinbase.Com" site. This fraudulent site tricked victims into entering their Coinbase login credentials. The criminals, using remote desktop software, gained access to these accounts and stole large sums of money. In some instances, they even posed as Coinbase customer service representatives to further manipulate their victims.

Among the victims was a cryptocurrency user from North Carolina, who suffered a loss of more than $240,000 in February 2022. Tomar, who indulged in a luxurious lifestyle funded by the stolen money, used the ill-gotten gains to purchase expensive vehicles and finance extravagant trips, including visits to Dubai.

Tomar was arrested in December 2023, and in May 2024, he pleaded guilty to charges of wire fraud conspiracy. His sentencing marks the conclusion of a complex investigation that highlights the growing threat of cyber fraud in the cryptocurrency space.

The case adds to a growing list of cryptocurrency-related frauds being prosecuted in the U.S. In a separate incident earlier this week, a 46-year-old man received a 20-year prison sentence for his involvement in crypto fraud. Additionally, another case involving a German national accused of defrauding investors out of $150 million is currently unfolding, with the suspect evading authorities after missing a court appearance in New York.

These cases underscore the increasing severity of financial crimes involving cryptocurrencies and the efforts by law enforcement to crack down on cybercriminals operating in this space.