The Enforcement Directorate has initiated legal proceedings in a cryptocurrency fraud case involving more than $20 million in misappropriated digital currencies. Additionally, they have frozen assets approximating INR 64.55 crore (around $6.83 million) linked to the alleged illicit gains.
Summary
- The Enforcement Directorate has filed a prosecution complaint against Chirag Tomar and others connected to a cryptocurrency fraud exceeding $20 million.
- Authorities claim the group exploited counterfeit Coinbase websites to capture user credentials and illegally siphon off cryptocurrency from victims’ accounts to wallets under their control.
- Indian law enforcement has confiscated assets valued at around INR 64.55 crore after tracing alleged gains through various crypto wallets and peer-to-peer transactions within India.
The agency’s findings point to Chirag Tomar, Pankaj Tomar, Kushagra Shakya, Akash Vaish, Rahul Anand, Ketan Luthra, Tomar Group of Industries Private Limited, and Exahomes Realtors. The allegations emerged as cryptocurrency investors were reportedly attracted by fraudulent sites mimicking the U.S.-based exchange Coinbase.
Investigators assert that Chirag Tomar, who is currently detained in the United States, played a pivotal role in the scheme. Evidence and case details were collected from U.S. authorities through Mutual Legal Assistance Treaty channels during the investigation.
Allegations indicate that the group developed fake websites resembling Coinbase to gather login details and authentication information from unsuspecting individuals. Upon gaining access, cryptocurrency assets were reportedly moved from victims’ accounts to wallets controlled by the accused.
U.S. Conviction Tied to Coinbase Spoofing Scheme
U.S. court records indicate that Tomar was arrested by the Federal Bureau of Investigation at Atlanta airport in December 2023. He later pleaded guilty to conspiracy to commit wire fraud and received a 60-month prison sentence, followed by two years of supervised release.
Prosecutors in the U.S. allege that the operation has been ongoing since at least June 2021, targeting individuals in the U.S. and beyond through bogus Coinbase websites. Court filings reveal that the fraudsters created domains designed to mimic Coinbase’s services, including a counterfeit version of the Coinbase Pro platform.
Further assertions from prosecutors suggest that scheme members impersonated Coinbase customer support representatives and, in some instances, used remote desktop software to access victims’ accounts. A North Carolina victim reportedly lost over $240,000 in February 2022.
U.S. authorities disclosed that the scheme generated over $20 million in stolen cryptocurrency from hundreds of victims. Moreover, court records alleged that part of the proceeds funded luxury car purchases and international trips, including travel to Dubai.
ED Follows Crypto Proceeds to Indian Assets
Indian investigators reported that following the cryptocurrency theft, the assets were funneled through multiple wallets and converted into different virtual currencies to obscure the transaction trail.
The agency revealed that the funds were eventually converted into Indian currency through peer-to-peer transactions and directed into bank accounts linked to Chirag Tomar and other accused parties.
These funds were allegedly used to acquire properties and other assets in India, as per investigation findings.
The prosecution complaint emerges as Indian authorities ramp up their examination of the digital asset sector under the Prevention of Money Laundering Act.
As mandated by regulations from the Financial Intelligence Unit, cryptocurrency exchanges and other virtual asset service providers are required to retain customer records, conduct know-your-customer checks, and report suspicious transactions.
The Enforcement Directorate plays a vital role in probing suspected money laundering related to digital assets.
