Indian Citizen Admits to Stealing $37 Million Through Fake Coinbase Website
A citizen of India has pleaded guilty to conspiracy to commit fraud after using a fake Coinbase website to steal user credentials, ultimately netting him over $37 million. Chirag Tomar, 30, was arrested at Atlanta airport on December 20, 2023, following an investigation by the U.S. Secret Service with assistance from the FBI.
How the Scam Worked
According to law enforcement, in June 2021, Tomar and his accomplices created a fraudulent website that mimicked the real Coinbase Pro platform. The fake site, coinbasepro[.]com, was designed to trick Coinbase users into entering their login credentials and two-factor authentication codes, believing they were on the legitimate site.
Coinbase Pro, which no longer exists, was previously a platform for professional cryptocurrency traders and investors, offering advanced features. It was shut down on November 9, 2022, with its features integrated into the main Coinbase platform.
Phishing and Social Engineering Tactics
The phishing scheme used the fake Coinbase Pro site along with social engineering tactics. Victims who landed on the site were shown a fake error message when trying to log in and were prompted to call a supposed Coinbase representative (who was actually a scammer). This person would then gain access to the victim’s system using remote access software.
“In some cases, victims were tricked into allowing fake Coinbase representatives to use remote access software, giving the scammers control over their computers and access to their legitimate Coinbase accounts,” the U.S. Department of Justice reported. “Scammers also posed as Coinbase support staff and deceived users into providing two-factor authentication codes over the phone.”
For example, one victim from North Carolina lost $240,000 in digital assets due to the fake Coinbase Pro website.
Millions Laundered Through Crypto Wallets
“As Tomar admitted in court, he controlled a number of cryptocurrency wallets that received hundreds of transactions with crypto stolen from the accounts of affected Coinbase users, totaling tens of millions of dollars,” law enforcement officials stated. “After receiving the stolen cryptocurrency, Tomar quickly converted it into other digital assets or moved the funds between multiple wallets controlled by himself and others. Eventually, the cryptocurrency was converted into cash, which was then distributed among Tomar and his accomplices.”
Investigators say Tomar used the stolen funds to purchase luxury items, including Rolex watches, Lamborghinis, and Porsches, as well as to fund trips to Dubai and Thailand.
Potential Sentence
Tomar now faces a maximum sentence of up to 20 years in prison and a $250,000 fine. The dates for the next hearings and sentencing have not yet been set.