As a seasoned researcher with years of experience delving into the world of cybercrime and digital assets, I find myself both appalled and intrigued by this story. This Indian national, Chirag Tomar, managed to swindle over $20 million from unsuspecting victims using a fake Coinbase website. The audacity of such a scheme is astounding, especially considering the lavish lifestyle he was able to fund with these ill-gotten gains.
A gentleman from India was given a five-year prison term due to his part in a massive cryptocurrency scam that involved creating a false Coinbase website. Over the course of two years, this deception swindled more than $20 million in digital currency from approximately 100 victims. The illicit gains were used to support the extravagant lifestyle of the con artist.
Indian National To Serve 5-Year Sentence
Last Thursday, it was declared by the U.S. Attorney’s Office in the Western District of North Carolina that a man from India received a five-year sentence for defrauding more than $20 million through a fake site mimicking the cryptocurrency exchange platform Coinbase.
U.S. District Judge Kenneth D. Bell has mandated that Chirag Tomar, a 31-year-old individual from India, will spend five years behind bars. After serving his time, he will be under supervision for an additional two years. This sentence comes after Mr. Tomar admitted guilt to wire fraud charges in May.
Tomar faces two charges: one for conspiring to carry out wire fraud, and another for conspiring to launder money. Each charge could result in a maximum penalty of imprisonment for 20 years.
Through an email account bearing his genuine name, the US Secret Service successfully recognized the individual in question. As per the court records, Tomar corresponded with his fellow conspirators and submitted an application for a U.S. travel visa via this same account.
Furthermore, he also maintained a record of his victims’ information, such as the amount swindled from each one, in a database, while employing falsely acquired identification papers to establish accounts on Binance under assumed identities.
Fake Coinbase Website Swipes $20 Million
From June 2021 onwards, an Indian national, along with his accomplices, began imitating the Coinbase Pro site to deceive crypto exchange users. They created a fake URL and duplicated the genuine site’s appearance, successfully defrauding over 500 victims within a two-year period.
As a researcher studying online fraud, I discovered that scammers like Tomar would often lure victims into fake Coinbase websites. Once individuals unwittingly entered these sites, they were duped into revealing their login credentials and authentication details. In some cases, the perpetrators posed as Coinbase’s customer service representatives to obtain the victims’ two-factor authentication codes, thus gaining full control over the victim’s account.
In some cases, users unknowingly granted permission for “representatives from Coinbase” to install remote desktop software on their computers and accounts. Once they had complete access, Tomar stole the user’s cryptocurrency, moving the stolen assets into wallets that he managed.
According to court records, an individual residing in the Western District of North Carolina suffered a loss of $240,000 due to a fraudulent crypto operation. Furthermore, these documents exposed that Tomar utilized the pilfered funds to finance his extravagant lifestyle, including trips to Dubai, Thailand, and London.
As a researcher, I noted that Tomar had an extravagant lifestyle, frequently investing in premium items such as luxury watches and high-end automobiles, like Lamborghinis and Porsches. On December 20, 2023, during my travels to the US to visit family, I was apprehended at the Atlanta airport.
Lately, Coinbase has alerted cryptocurrency investors of a troubling pattern in the market. According to Bitcoinist, this platform disclosed that fraudsters have been focusing on young generation (Gen Z) users via popular social media platforms such as TikTok and Instagram.
The report noted that social media scams have increased, targeting users with and without knowledge about crypto. Users should remain alert about any suspicious activity or requests from online users and websites, as phishing remains the largest scam type within the industry.
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2024-10-19 08:42