The United States Federal Court has sentenced Chirag Tomar, an Indian citizen, to five years in prison for developing a fake website resembling crypto exchange Coinbase’s website. He used the website to steal over $20 million from Coinbase users who were unaware of the trap.
Spoofed Coinbase Website
Starting in June 2021, Tomar and his accomplices tricked many users worldwide into giving them access to their Coinbase accounts by disguising their email addresses, website URLs, and names to mimic Coinbase.
The URL “Pro.Coinbase.Com.” is used to access Coinbase’s “Pro” website for advanced crypto traders. As revealed in the court documents, Tomar created his fraudulent website with the URL “CoinbasePro.com.”
Tomar’s website would automatically trigger an authentication process upon login, tricking users into providing their login credentials to the fraudsters.
In cases of customers with more secure accounts, Tomer and his allies would impersonate Coinbase customer care agents by calling the individuals on the phone and requesting two-factor authentication codes, which helped them access the victims’ accounts.
Based on court records, Tomar used the details the victims provided to log into their accounts and transfer crypto holdings in the wallet to another wallet he controlled. He would then swap the stolen tokens, moving them to other wallets to make it easier for him to cash out his proceeds. After converting the stolen funds into local currency, he would share them with his co-conspirators.
Tomar used the money he stole from the victims to boost his lavish lifestyle. He purchased luxurious Audemars Piguet watches, Lamborghinis, and Porsches and funded his trips to Dubai, Thailand, and other countries.
Tomar Receives Comeuppance
Tomar’s fraudulent scheme and luxurious lifestyle didn’t last long, as forces arrested him at the Atalanta airport on his arrival in the U.S. in December 2023.
A few months later, in May 2024, he pleaded guilty to wire fraud conspiracy. Since then, he has been under custody and will be transferred to the custody of the Federal Bureau of Prisons once he’s assigned to a federal facility.
Moreover, after serving five years in prison, Tomar will be sentenced to two years of court-mandated supervision.
