U.S. Sentences Crypto Fraudster To 5 Years In Prison For For Coinbase Scheme
Coinbase
Crypto fraud
Crypto Regulation
Chirac Tomar pled guilty on one criminal charge related to the massive hack this past year.
Last updated:
October 18, 2024 16:04 EDT
Author
Julia Smith
Author
Julia Smith
About Author
Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.
Author Profile
Share
Copied
Last updated:
October 18, 2024 16:04 EDT
Why Trust Cryptonews
With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict
editorial standards
, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets.
Read more about Cryptonews
Chirag Tomar, an Indian citizen, was sentenced to 5 years behind bars on Thursday for orchestrating a multi-million dollar crypto scheme by creating fake Coinbase websites.
Chirag Tamar Faces The Music For Crypto Scheme
According to an October 17 press release
from the United States Attorney’s Office for the District of North Carolina, U.S. District Judge Kenneth D. Bell further sentenced the now-convicted 31-year-old to two years of supervised release.
Court filings show Tomar and anonymous co-conspirators stole more than $20 million in the
years-long digital asset scheme
beginning in 2021 by creating several fake websites with similar URLs aimed at deceiving Coinbase clients, effectively “spoofing” the crypto exchange.
“Once victims entered their login credentials into the fake website, an authentication process was triggered,” the press release reads. “In some instances, victims were tricked into providing their login and authentication information of the real Coinbase website to fraudsters.”
In other instances, victims were tricked into allowing fake Coinbase representatives to execute remote desktop software, enabling fraudsters to control victims’ computers and access their legitimate Coinbase accounts.
Additionally, Tomar and his co-conspirators would pretend to be Coinbase representatives over the phone to swindle victims’ funds.
As soon as the crypto fraudsters gained access to the customers’ accounts, they would transfer the illicit funds back into wallets under their control.
Fake Coinbase Fraudsters Drain Millions From Victims’ Wallets
In one instance, a victim in the Western District of North Carolina was drained of $240,000 after a fake Coinbase representative told him that his account was locked.
Tomar would then
shuffle the cryptocurrencies
around “hundreds” of different wallets under his jurisdiction, which saw tens of millions of dollars in inflows.
The digital asset con man would ultimately convert the tokens’ value into cash and distribute the sum among the scammers.
According to authorities, Tomar and his co-conspirators used customer money to live a “lavish lifestyle,” purchasing expensive watches and luxury vehicles and taking trips overseas.
Tomar was arrested in December 2023 and
pleaded guilty to wire fraud conspiracy
in May 2024. This charge carries a potential jail time of up to twenty years.
He has yet to be designated a federal correctional facility where he will serve out his time behind bars.
Follow us on Google News