In a significant legal development, Chirag Tomar, a 31-year-old Indian national, was sentenced to five years in prison by the U.S. District Judge Kenneth D. Bell for his role in a fraudulent scheme that scammed millions from cryptocurrency users. According to the U.S. Attorney's Office for the District of North Carolina, Tomar and his co-conspirators deceived unsuspecting victims by creating counterfeit Coinbase websites.
The fraudulent activities, which began in 2021, targeted users of the popular crypto exchange platform Coinbase. By crafting fake websites with URLs similar to the legitimate site, the fraudsters tricked victims into entering their login credentials. Some were even misled into handing over their two-factor authentication codes, allowing Tomar and his team full access to their accounts.
In more complex cases, the fraudsters impersonated Coinbase representatives, convincing victims to install remote desktop software. This tactic gave them complete control over the victims’ computers and access to their genuine Coinbase accounts, from which they siphoned off funds.
One victim in North Carolina lost $240,000 after being told his account had been locked by a fake representative. The scheme overall led to the theft of more than $20 million in cryptocurrency, which Tomar and his team transferred across hundreds of wallets to disguise the origins of the funds.
Tomar, who was arrested in December 2023, enjoyed a lavish lifestyle funded by the stolen assets. Along with his co-conspirators, he used the proceeds to purchase luxury watches, expensive vehicles, and fund extravagant vacations overseas.
Though sentenced to five years in prison, Tomar also faces two years of supervised release after his jail time. Authorities are still working to recover the stolen funds, but Tomar’s guilty plea to wire fraud conspiracy—a charge that could have resulted in up to 20 years in prison—underscores the gravity of his actions.
This case serves as a reminder of the importance of verifying the authenticity of websites and staying cautious when managing cryptocurrency assets online.
