Indian counterfeiters scam Coinbase Pro for 20 million pounds worth of cryptocurrency, suspects sentenced to 5 years

Indian citizen Chirag Tomar counterfeited the Pro version of the cryptocurrency exchange Coinbase, causing over 20 million US dollars in losses to hundreds of victims. He has been arrested by the Federal Bureau of Investigation (FBI) in the United States and sentenced to 5 years in prison.

Counterfeiting Coinbase to Scam $20 Million in Cryptocurrency

According to court documents, starting in June 2021, Tomar and other accomplices counterfeited the Pro version website of the cryptocurrency exchange Coinbase, deceiving hundreds of victims worldwide. These scammers tricked victims into providing login credentials and verification messages, ultimately gaining control of the victims' accounts and swiftly transferring the cryptocurrencies in those accounts to wallets controlled by the scammers. Hundreds of victims globally suffered significant losses due to this series of fraudulent activities.

Using the Fake URL CoinbasePro.Com to Lure Victims into Contacting Customer Support and Providing Personal Information

These scammers created a nearly identical fake website of Coinbase Pro, using the fake URL "CoinbasePro.Com" to confuse victims. Victims were misled into providing their login information and were even asked to install remote software, allowing the scammers to gain direct control of their computers and effortlessly access their real Coinbase accounts. Some scammers also impersonated Coinbase customer support staff, using phone calls to fraudulently request victims to provide two-factor authentication codes. By bypassing multiple security measures, the scammers successfully completed asset transfers, effectively emptying victims' accounts.

Individual Cases Involving up to $240,000

Documents reveal that a victim from North Carolina, USA logged into the fake website in February 2022, received a notification that their account was locked, and was then instructed to contact Coinbase customer support. After providing two-factor authentication information, cryptocurrency valued at over $240,000 in the victim's account was swiftly transferred to the scammers' account. Cases like this are rampant, with victims worldwide experiencing losses ranging from thousands to tens of thousands of dollars.

Illicit Gains Fund Lavish Spending, But Justice Prevails

The documents state that Tomar and other accomplices used the fraudulent proceeds for extravagant spending, living a life of luxury. Not only did they purchase multiple expensive watches, but they also bought several luxury cars worth millions of dollars, and took multiple vacations to destinations like Dubai and Thailand, all funded by the illegal gains from the scam.

In December 2023, Tomar was arrested upon entry into the United States at Atlanta Airport. In May 2024, he pleaded guilty to charges of conspiracy to commit wire fraud. Ultimately, Tomar was sentenced to 5 years in prison, followed by 2 years of supervised release. Tomar is currently awaiting assignment to a federal prison for his sentence.