US jails man for 5 years over $20m crypto fraud

As a seasoned analyst with a keen eye for detail and years of experience in cybercrime investigations, I find this case to be a grim reminder of the ever-evolving landscape of digital fraud. The sentence handed down to Chirag Tomar, a 31-year-old Indian national, serves as a strong message against such unscrupulous activities.


As an analyst, I’m reporting that I myself have uncovered a case where an individual from India was found guilty and given a five-year sentence for orchestrating a massive crypto scam. This scheme involved the creation of bogus cryptocurrency websites through which over $20 million was illicitly obtained.

31-year-old Indian national Chirag Tomar was handed a 60-month prison term by U.S. District Judge Kenneth D. Bell, as announced by the U.S. Justice Department. After serving his prison time, Tomar will be supervised for an additional two years.

His sentencing is the latest conviction in a series of similar fraud schemes.

Crypto fraud via spoofed website

As stated by Dena J. King, the U.S. Attorney for the Western District of North Carolina, it is alleged that Tomar deceived hundreds of individuals out of more than $20 million by convincing them to use fraudulent or disguised websites dating back to June 2021.

The defense team claimed that Tomar, along with his accomplices, intentionally selected victims worldwide and within the U.S., using a technique to mimic the U.S.-based cryptocurrency platform, Coinbase.

In simpler terms, spoofing is a type of cybercrime where a dishonest person pretends to be someone or something trustworthy in order to deceive victims. For instance, Tomar and others created a fake URL for the crypto exchange site of Coinbase, which was “Pro.Coinbase.Com”. However, they actually used the URL CoinbasePro.Com, along with a counterfeit website that unwitting victims believed was the real thing. This allowed the cybercriminals to trick victims into revealing their authentication details on the actual Coinbase site.

Through the use of remote desktop applications, scammers have been found to pilfer funds from unsuspecting individuals, some of whom were tricked into believing they were speaking with representatives from Coinbase’s customer service department.

Court documents reveal that a North Carolina crypto user lost more than $240,000 in February 2022.

In December 2023, the individual known as Tomar, who had misused stolen funds for purchasing high-end vehicles and sponsoring extravagant journeys to Dubai and other destinations, was taken into custody. Later in May 2024, he admitted guilt on counts such as wire fraud conspiracy.

This past week, an American court has handed down a 20-year imprisonment sentence to a 46-year old individual for committing cryptocurrency fraud.

Currently, a man from Germany accused of a $150 million cryptocurrency fraud case in New York has disappeared following his absence at a scheduled court hearing.

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2024-10-19 02:40