Fake Coinbase Scam Leads to 5-Year Prison Sentence for Indian National

Chirag Tomar, a 31-year-old Indian national, has been sentenced to 60 months in prison for orchestrating a large-scale online scam that defrauded hundreds of cryptocurrency users by impersonating the popular crypto exchange Coinbase. U.S. authorities confirmed that Tomar and his accomplices stole over $20 million through a fraudulent website that mimicked Coinbase Pro. In addition to his prison term, Tomar will face two years of supervised release.

Fake coinbase pro site used to steal millions

The fraudulent operation began in June 2021 when Tomar, alongside co-conspirators, created a deceptive website that mimicked the interface of Coinbase Pro. Using a fake URL, “CoinbasePro.Com,” they misled users into believing they were on a legitimate platform. The victims, unknowingly logging into the spoof site, provided their login credentials, which allowed the scammers to access their actual Coinbase accounts.

The criminals employed various tactics, including phishing for two-factor authentication (2FA) codes, to gain complete control of victims’ accounts. They even posed as Coinbase customer service representatives to trick users into handing over sensitive information. Once they had access to the accounts, they swiftly transferred the crypto assets to wallets they controlled, leaving victims with significant financial losses.

Victims tricked through phishing and fake support

The scam involved highly coordinated phishing schemes designed to fool users into providing access to their accounts. A notable case occurred in February 2022 when a victim attempting to log into their Coinbase account was redirected to the fraudulent site. After receiving a notification that their account was locked, the victim contacted a phone number provided by the fake website. 

The individual posing as a Coinbase representative convinced the victim to give them the 2FA code, enabling the criminals to steal $240,000 from their account in seconds. After gaining access to the victims’ crypto wallets, the fraudsters converted the stolen assets into other types of digital currencies. These funds were eventually converted into cash and distributed among Tomar and his co-conspirators.

Luxury lifestyle funded by stolen Crypto

Tomar and his accomplices lived lavishly off their ill-gotten gains. According to court documents, Tomar used the stolen funds to purchase high-end luxury items, including a Lamborghini. He also enjoyed extravagant trips to destinations such as Dubai and Thailand, spending the stolen money on an extravagant lifestyle.

Authorities arrested Tomar at Atlanta Airport in December 2023 as he attempted to flee. In May 2024, he pleaded guilty to conspiracy to commit wire fraud. His sentencing marks the conclusion of a large-scale investigation into the fraudulent scheme, which targeted both U.S. and international crypto users. The case highlights the growing threat of online phishing schemes and the need for heightened vigilance when dealing with cryptocurrency platforms.

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