India's Directorate of Enforcement (ED) filed a prosecution complaint against Chirag Tomar and seven other individuals and entities in connection with an alleged Coinbase spoofing scheme that stole more than $20 million from victims.
The ED launched its investigation after reports of Tomar's arrest in the United States and later obtained details of the criminal proceedings and evidence through Mutual Legal Assistance Treaty channels from U.S. authorities, the agency said in a statement on Monday. Tomar was previously sentenced in the United States to 60 months in prison, followed by two years of supervised release.
According to the statement, Tomar and his associates created spoofed websites designed to mimic Coinbase's platform to harvest user login credentials and two-factor authentication codes.
After gaining access to victim accounts, the group transferred cryptocurrency holdings to wallets under their control, converted the assets through multiple wallets, and ultimately exchanged the funds for Indian rupees via peer-to-peer transactions, the ED alleged.
The investigation also found that proceeds from the alleged fraud were deposited into bank accounts linked to Tomar, his family members, associates, and group entities before being layered through multiple accounts and used to acquire movable and immovable assets, per the statement.
