A sophisticated cryptocurrency scam involving fake Coinbase websites has resulted in a staggering theft of over $20 million from victims worldwide. The U.S. Department of Justice (DOJ) announced that Indian national Chirag Tomar was sentenced to five years in prison for his pivotal role in this elaborate fraud scheme.
Spoofed Websites and Deceptive Tactics
The fraud, which began in June 2021, revolved around counterfeit versions of Coinbase and its professional trading platform, Coinbase Pro. Scammers created deceptive URLs, tricking users into believing they were logging into the legitimate site. Once victims entered their login credentials, the attackers intercepted this sensitive information, gaining access to their accounts.
Fraudsters employed various advanced techniques, including persuading victims to install remote desktop software that granted them direct control over the victims’ computers. This allowed the criminals to swiftly drain funds from legitimate Coinbase accounts.
Impersonating Customer Support
A significant aspect of the scam involved impersonating Coinbase customer service agents. Victims were either directed to call a fake support line or received unsolicited calls from the scammers. During these conversations, victims were manipulated into sharing crucial two-factor authentication codes necessary for accessing their accounts. With these codes in hand, the fraudsters quickly transferred the stolen cryptocurrency into wallets they controlled, converting the funds into cash to fund their lavish lifestyles.
High-Profile Arrest and Investigation
One of the most notable incidents occurred in February 2022 when a resident from North Carolina lost over $240,000 after attempting to log into a counterfeit Coinbase site. Believing their account was locked, the victim contacted a fraudulent representative and unknowingly provided authentication codes.
Chirag Tomar was arrested at Atlanta airport in December 2023. By May 2024, he had pleaded guilty to conspiracy to commit wire fraud. U.S. authorities, including the Secret Service and FBI, played vital roles in dismantling Tomar’s operation, leading to his sentencing. He will remain in custody until he is transferred to a federal prison.
