Indian citizen Chirag Tomar has been sentenced to five years in prison for defrauding Coinbase users with websites that spoofed the cryptocurrency exchange, the United States Attorney’s Office for the Western District of North Carolina announced. Tomar pleaded guilty to wire fraud conspiracy in May.
Fake website, real losses
Tomar and co-conspirators created a website imitating the Coinbase Pro site and used it to steal users’ login credentials and authentication information. In some cases, users were referred to fake customer service representatives who convinced the victims to allow them remote access to their computers.
The result in either case was the loss of the cryptocurrency in the victims’ Coinbase accounts. In one incident, the victim, located in western North Carolina, lost over $240,000.
Tomar was active as early as June 2021 and was arrested in December 2023. His scheme raked in more than $20 million from hundreds of victims worldwide, according to a Department of Justice statement. Furthermore:
“Tomar used the victims’ funds to pay for his lavish lifestyle, including to purchase Audemars Piguet and other expensive watches, to buy luxury vehicles like Lamborghinis and Porsches, and to make trips to Dubai, Thailand and elsewhere.”
The Justice Department originally estimated losses from Tomar’s activities at $37 million. He faced a maximum sentence of 20 years’ imprisonment and a $250,000 fine. The identities and fates of Tomar’s co-conspirators were not disclosed.
The Coinbase Pro website was eventually closed and its functions integrated into the main Coinbase site.
Related: FBI token: How the FBI used a fake AI fund coin to nab fraudsters
New technology, familiar techniques
The crypto space offers bad actors ample opportunities for crime. Although there are risks unique to crypto, many times old and familiar scams are equally fruitful.
In September, fraudsters posing as members of the Gemini cryptocurrency exchange customer support team were able to steal 4,100 Bitcoin (BTC) worth $230 million from an individual in Washington, DC.
Source: Mario Nawfal’s Roundtable
In October, a sentence was handed down in New York for a $3.6 million Ponzi scheme, while an 86-year-old was sentenced to probation for a $14 million Ponzi in Nevada.
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