India’s ED files charges in $20M Coinbase spoofing case

The Enforcement Directorate has filed a prosecution complaint in a cryptocurrency fraud case involving more than $20 million in stolen digital assets and has attached assets worth about INR 64.55 crore (approx. $6.83 million) linked to the alleged proceeds of crime.

According to the agency, the complaint names Chirag Tomar, Pankaj Tomar, Kushagra Shakya, Akash Vaish, Rahul Anand, Ketan Luthra, Tomar Group of Industries Private Limited, and Exahomes Realtors. The case stems from allegations that cryptocurrency investors were tricked through fake websites designed to resemble the U.S.-based crypto exchange Coinbase.

Investigators alleged that Chirag Tomar, who is currently in custody in the United States, played a central role in the scheme. The agency said evidence and case details were obtained from U.S. authorities through Mutual Legal Assistance Treaty channels as part of the investigation.

Authorities alleged that the group created fraudulent websites resembling Coinbase and used them to collect login credentials and authentication details from unsuspecting users. Once access was obtained, cryptocurrency holdings were allegedly transferred from victims’ accounts into wallets controlled by the accused.

U.S. conviction tied to Coinbase spoofing scheme

Court records in the United States show that Tomar was arrested by the Federal Bureau of Investigation at Atlanta airport in December 2023. He later pleaded guilty to wire fraud conspiracy and was sentenced to 60 months in prison, followed by two years of supervised release.

U.S. prosecutors had alleged that the operation ran from at least June 2021 and targeted victims in the United States and other countries through spoofed Coinbase websites. According to court filings, the fraudsters used domains designed to imitate Coinbase’s services, including a fake version of the exchange’s Coinbase Pro platform.

Prosecutors also alleged that members of the scheme impersonated Coinbase customer support representatives and, in some instances, used remote desktop software to gain access to victims’ accounts. One victim in North Carolina reportedly lost more than $240,000 in February 2022.

U.S. authorities said the scheme generated more than $20 million in stolen cryptocurrency from hundreds of victims. Court documents further alleged that some of the proceeds were spent on luxury vehicles and international travel, including trips to Dubai.

ED traces alleged crypto proceeds to assets in India

Indian investigators alleged that after the cryptocurrency was stolen, the assets were moved through multiple wallets and converted into other virtual digital assets to obscure the transaction trail. 

The agency said the funds were eventually converted into Indian currency through peer-to-peer transactions and routed into bank accounts linked to Chirag Tomar and other accused individuals.

Those funds were then allegedly used to acquire properties and other assets in India, according to the investigation.

The prosecution complaint comes as Indian authorities continue to tighten oversight of the digital asset sector under the Prevention of Money Laundering Act. 

Under rules enforced by the Financial Intelligence Unit, cryptocurrency exchanges and other virtual asset service providers are required to maintain customer records, carry out know-your-customer checks, and report suspicious transactions. 

The Enforcement Directorate serves as one of the key agencies responsible for investigating alleged money laundering involving digital assets.