CHARLOTTE, N.C. – A brazen cryptocurrency heist unraveled today with the guilty plea of Chirag Tomar, 30, a citizen of the Republic of India. Tomar admitted to his central role in a sophisticated wire fraud conspiracy that siphoned off over $37 million from unsuspecting Coinbase users worldwide. The scheme revolved around a meticulously crafted fake Coinbase website designed to steal login credentials and access victim accounts.
Tomar was taken into custody at the Atlanta airport on December 20, 2023, immediately upon his arrival in the United States. He remains in federal custody as he awaits sentencing. The investigation, spearheaded by the United States Secret Service, Charlotte Field Office, revealed a complex operation targeting users of Coinbase, one of the world’s largest virtual currency exchanges. The fraud specifically targeted Coinbase “Pro” users, leveraging the similar URL “CoinbasePro.Com” to dupe victims.
According to court documents, Tomar and his accomplices didn’t just rely on a fake website. They employed a multi-pronged attack, tricking victims into divulging two-factor authentication codes during fake phone calls impersonating Coinbase customer service. In other instances, they gained remote access to victims’ computers, directly seizing control of their Coinbase accounts. The speed and efficiency of the transfers – moving stolen crypto rapidly between wallets – suggest a well-organized criminal network. One victim in the Western District of North Carolina lost over $240,000 after falling for the scam in February 2022.
Tomar confessed in court to controlling numerous cryptocurrency wallets that served as the final destination for the stolen funds. These wallets weren’t holding accounts; they were transit points. The stolen cryptocurrency was quickly converted into other digital assets or shuffled between multiple wallets to obscure the trail, ultimately being exchanged for cash distributed among the conspirators. The scale of the operation is staggering, with Tomar’s wallets receiving “hundreds of transactions” of stolen cryptocurrency.
But it wasn’t just about the money. Court documents paint a picture of a lavish lifestyle funded by illicit gains. Tomar allegedly used the stolen funds to purchase luxury items, including a Rolex and other expensive watches, high-end vehicles like Lamborghinis and Porsches, and to finance extravagant trips. This wasn’t a faceless cybercrime; it was a calculated effort to live large on the backs of defrauded individuals. U.S. Attorney Dena J. King for the Western District of North Carolina, along with Special Agent in Charge Jason Byrnes of the Secret Service, announced the guilty plea today, vowing to continue pursuing those who exploit the digital realm for criminal enrichment.
The investigation is ongoing, and authorities are working to identify and apprehend Tomar’s co-conspirators. This case serves as a stark reminder of the growing threat of cryptocurrency fraud and the importance of vigilance when engaging in online financial transactions. Victims are urged to report any suspicious activity to the FBI’s Internet Crime Complaint Center (IC3). Sentencing for Chirag Tomar has not yet been scheduled, but he faces significant prison time for the federal charges of wire fraud conspiracy.
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Key Facts
- State: North Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Cybercrime|White Collar Crime
- Source: Official Source ↗
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