Indian National Sentenced for $20 Million Coinbase Scam

The cryptocurrency industry has faced its share of scams and cyberattacks, causing some potential investors to approach it with caution.

Law enforcement agencies worldwide are intensifying their efforts to combat fraud within this sector. A recent case highlights this crackdown: an Indian man has been sentenced for his role in a cryptocurrency scam.

Chirag Tomar received a five-year prison sentence for defrauding numerous victims out of more than $20 million through a counterfeit website that imitated the well-known cryptocurrency exchange Coinbase. The U.S. Department of Justice reported that, in addition to his prison term, Tomar will undergo two years of supervised release.

The fraudulent operation involved a spoofed version of Coinbase Pro, using the fake URL “CoinbasePro.Com” to deceive users into believing they were on the legitimate site.

READ MORE:

Terra Luna Faces Uncertainty as Do Kwon’s Extradition Looms

Tomar was apprehended last December upon arriving in the United States and later pled guilty to wire fraud conspiracy charges in May 2024. He remains in federal custody until he is transferred to a designated prison facility.

Proceeds from the scam were reportedly used to fund a lavish lifestyle, including the purchase of luxury cars and high-end watches, as well as extravagant vacations to destinations like Thailand and Dubai.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.