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Chirag Tomar Sentenced for Crypto Fraud
Chirag Tomar, a 31-year-old Indian national, was sentenced to five years in prison on Thursday for his role in orchestrating a sophisticated multi-million dollar cryptocurrency scheme that involved creating fraudulent Coinbase websites. The judgment was handed down by U.S. District Judge Kenneth D. Bell in the District of North Carolina.
Details of the Fraudulent Operation
According to a press release from the United States Attorney’s Office dated October 17, Tomar’s illicit activities started in 2021 and involved stealing over $20 million from unsuspecting Coinbase customers. By setting up counterfeit websites that closely mimicked the legitimate Coinbase platform, Tomar and his unknown accomplices successfully tricked clients into revealing their login information, effectively spoofing the well-known crypto exchange.
Mechanisms of Deception
The fraud was executed through various deceptive tactics. Victims who entered their credentials into the fake websites triggered an authentication process that routed their information into the hands of the fraudsters. In some cases, victims were misled into providing their login and authentication details directly to these criminals. Moreover, the scammers would often impersonate Coinbase representatives over the phone, using persuasive techniques to extract sensitive information or persuade victims to install remote desktop software, allowing the fraudsters direct access to the victims’ computers and accounts.
Significant Financial Losses for Victims
One notable case involved a victim from the Western District of North Carolina who lost an astonishing $240,000 when a fake Coinbase representative informed him that his account had been locked. Tomar would then transfer the assets through numerous wallets he controlled, facilitating millions of dollars in transactions. The cryptocurrencies would eventually be converted into cash, which contributed to a lavish lifestyle that included the purchase of luxury goods and extravagant travel.
Legal Consequences and Future Implications
Tomar’s fraudulent activities led to his arrest in December 2023, followed by a guilty plea for conspiracy to commit wire fraud in May 2024. This charge could have potentially resulted in a prison sentence of up to twenty years; however, the five-year sentence reflects the severity of his actions. In addition to the prison term, he has been sentenced to two years of supervised release upon completion of his prison term. As of now, he has not been assigned to a federal correctional facility where he will serve his time.
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