The Enforcement Directorate has filed a judicial complaint in a cryptocurrency fraud case involving over $20 million in stolen digital assets and involving assets worth around INR 64.55 crore (about $6.83 million) linked to the alleged proceeds of crime.
summary
- The Enforcement Directorate has filed a complaint against Chirag Tomar and others in a cryptocurrency fraud case involving more than $20 million worth of stolen digital assets.
- Investigators alleged that the group used fake Coinbase websites to steal user credentials and transfer cryptocurrency from victims’ accounts to wallets under their control.
- Indian authorities have seized assets worth around INR 64.55 crore after tracking the alleged proceeds through multiple cryptocurrency wallets and peer-to-peer transactions in India.
According to an agencyThe names of the complainant are Chirag Tomar, Pankaj Tomar, Kushagra Shakya, Akash Vaish, Rahul Anand, Ketan Luthra, Tomar Group of Industries Private Limited and Exahomes Real Estate. The case stems from allegations that cryptocurrency investors were deceived by fake websites designed to resemble US-based cryptocurrency exchange Coinbase.
Investigators alleged that Chirag Tomar, currently detained in the US, played a central role in the scheme. The agency said that evidence and details of the case were obtained from US authorities through mutual legal assistance treaty channels as part of the investigation.
Authorities alleged that the group created fraudulent Coinbase-like websites and used them to collect login credentials and authentication details from unsuspecting users. Once access was gained, cryptocurrency holdings were allegedly transferred from the victims’ accounts to wallets controlled by the defendants.
US conviction linked to Coinbase spoofing scheme
Court records in the United States show that the FBI arrested Tomar at the Atlanta airport in December 2023. He later pleaded guilty to the wire fraud conspiracy and was sentenced to 60 months in prison, followed by two years of supervised release.
The American prosecutors were The alleged one The operation continued as of at least June 2021 and targeted victims in the United States and other countries through spoofed Coinbase websites. According to court filings, the scammers used domains designed to mimic Coinbase’s services, including a fake version of the exchange’s Coinbase Pro platform.
Prosecutors also alleged that members of the scheme impersonated Coinbase customer support representatives and, in some cases, used remote desktop software to access victims’ accounts. One victim in North Carolina reportedly lost more than $240,000 in February 2022.
US authorities said the scheme generated more than $20 million in cryptocurrencies stolen from hundreds of victims. Court documents also alleged that some of the proceeds were spent on luxury cars and international travel, including trips to Dubai.
ED traces alleged cryptocurrency proceeds to assets in India
Indian investigators claimed that after the cryptocurrency was stolen, the assets were moved across multiple wallets and converted into other virtual digital assets to hide the transaction trail.
The money was eventually converted into Indian currency through peer-to-peer transactions and was directed to bank accounts linked to Chirag Tomar and other accused individuals, the agency said.
This money was then allegedly used to purchase real estate and other assets in India, according to the investigation.
The prosecution’s complaint comes at a time when the Indian authorities continue to tighten supervision over the digital assets sector under the Prevention of Money Laundering Act.
Under the rules Forced By the FIU, cryptocurrency exchanges and other virtual asset service providers are required to maintain customer records, conduct know-your-customer checks, and report suspicious transactions.
The Enforcement Directorate acts as one of the main agencies responsible for investigating alleged money laundering operations involving digital assets.
