The U.S. Department of Justice (DOJ) announced Thursday that Chirag Tomar, an Indian citizen, has been sentenced to five years in prison for leading an elaborate cryptocurrency scam targeting Coinbase users. The scheme caused losses exceeding $20 million across hundreds of victims in the United States and other countries.
How the Scam Worked: Fake Websites and Remote Access
According to court documents, Tomar and his accomplices created fraudulent websites that mimicked the official Coinbase Pro platform. The fake sites used URLs that closely resembled the legitimate domain, tricking users into entering their login credentials and two-factor authentication (2FA) codes. In some cases, victims were persuaded to install remote desktop software, giving the attackers direct control over their computers and full access to their genuine Coinbase accounts.
Impersonating Customer Support to Steal 2FA Codes
The scammers also posed as Coinbase customer service representatives, either calling victims unsolicited or directing them to call fake support lines. During these conversations, victims were convinced to share their 2FA codes under the pretext of account verification or issue resolution. Once obtained, the perpetrators rapidly transferred funds from the victims’ accounts to wallets under their control, then converted the stolen crypto into fiat currency. The proceeds funded Tomar's lavish lifestyle, including luxury cars, high-end watches, and international travel.
Stark Example: North Carolina Resident Lost $240,000
One notable incident occurred in February 2022, when a North Carolina resident attempted to log into a fake Coinbase website. Mistaking the site for the real platform and believing their account was locked, the victim contacted a scammers’ impersonating support agent and unknowingly provided their authentication code. This led to the theft of over $240,000 in cryptocurrency. Similar incidents were reported globally, with hundreds of victims.
Arrest and Sentencing
Tomar was arrested at Atlanta’s airport in December 2023. By May 2024, he pleaded guilty to conspiracy to commit wire fraud. The U.S. Secret Service and the Federal Bureau of Investigation (FBI) jointly investigated the case, ultimately dismantling the operation. Tomar will remain in custody until transferred to a federal prison. The DOJ warned that phishing scams impersonating major exchanges like Coinbase continue to pose a serious threat to crypto users, urging investors to always verify website URLs and never share private keys or authentication codes with anyone.
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