An Indian man, Chirag Tomar, 31, was sentenced by U.S. District Judge Kenneth D. Bell to five years in prison for orchestrating a $20 million crypto fraud scheme.
An Indian man, Chirag Tomar, 31, was sentenced by U.S. District Judge Kenneth D. Bell to five years in prison for orchestrating a $20 million crypto fraud scheme that targeted victims worldwide.
Judge Bell handed down the sentence in a federal court in North Carolina, following Tomar's guilty plea of conspiracy to commit wire fraud earlier this year.
Beginning in June 2021, Tomar and his co-conspirators operated a spoofing scheme that involved creating a fake Coinbase website. This counterfeit platform mimicked the legitimate crypto exchange, tricking users into entering their login credentials and two-factor authentication codes.
In addition to the website, the scammers posed as Coinbase customer service representatives to extract sensitive information over the phone.
Tomar was arrested on Dec. 20, 2023, at the Hartsfield-Jackson Atlanta International Airport as he entered the United States. Reports indicate he used the stolen funds to finance a lavish lifestyle, purchasing luxury items such as Audemars Piguet watches and high-end vehicles, including Lamborghinis and Porsches.
He also apparently funded extravagant trips to various international destinations, including Dubai and Thailand.
The fraudulent activities led to significant losses for victims, with one individual from North Carolina reporting a loss of over $240,000. After gaining access to victims' accounts, the scammers transferred the crypto to wallets under their control and then converted it to other forms of crypto before cashing out.
Following his prison term, Tomar will face two years of supervised release. He remains in federal custody and will be transferred to a Bureau of Prisons facility once designated.
The investigation was conducted by the U.S. Secret Service, with assistance from the FBI.
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