In order to steal over $37 million by impersonating cryptocurrency exchange Coinbase, an Indian national entered a guilty plea to wire fraud conspiracy in the United States. He and his accomplices set up a phony Coinbase Pro website where they stole two-factor authentication tokens and login passwords, then transferred the victims’ bitcoin to their own accounts.
Appears Guilty in $37 Million Coinbase Crypto Case Including Spoofing
On May 20, the Western District of North Carolina U.S. Attorney’s Office declared that Chirag Tomar, an Indian national, had entered a guilty plea to “federal charges for stealing more than $37 million through a spoofing scheme of the Coinbase website.” He entered the country on December 20 of last year and was taken into federal custody at the Atlanta airport.
According to the release, Tomar and his accomplices created a fictitious Coinbase Pro website with the intention of “stealing millions in cryptocurrency from hundreds of victims located worldwide and in the United States.” They tricked customers into inputting their login information and two-factor authentication codes by “spoofing” the Coinbase website. Because of this, the scammers were able to access the victims’ Coinbase accounts without authorization and move a sizable quantity of Bitcoin to wallets under their control.
As stated in the announcement:
Tomar entered a guilty plea to the charge of wire fraud conspiracy, which has a potential penalty of twenty years behind bars and a fine of $250,000.
The fraudulent scheme required careful preparation and implementation. Users may find it challenging to recognize the fraud since the phony website bore striking similarities to the real Coinbase Pro platform. Tomar and his group swiftly took advantage of the users’ entry of personal information to withdraw money from their accounts. After then, the pilfered bitcoin was utilized to pay for opulent purchases and trips abroad, underscoring the magnitude and complexity of the scam.
Court documents show:
Tomar spent the money from the victims to finance his opulent lifestyle, which included buying a Lamborghini and Porsche, a Rolex, and other pricey items. He also used the money to go to Dubai, Thailand, and other places.