Confiscation of Assets
The Enforcement Directorate (ED) of India has moved to confiscate assets valued at $4.8 million (approximately ₹42.8 crore) belonging to Chirag Tomar, a 31-year-old man currently serving time in the United States for orchestrating a substantial cryptocurrency scam that defrauded investors of $20 million. The agency announced on Tuesday that it has taken control of 18 real estate properties in Delhi, alongside various bank accounts associated with Tomar and his close contacts.
Expert Commentary
Sudhakar Lakshmanaraja, founder of Digital South Trust, a blockchain education initiative, commented on the matter, stating, “There is no escape for those involved in cryptocurrency fraud—authorities will pursue, expose, and imprison wrongdoers.” He emphasized that the Indian government possesses the necessary tools and collaboration capabilities to tackle financial crimes within the digital asset sector.
Details of the Scam
Tomar’s criminal activities included a complex phishing scheme designed to mimic Coinbase, a leading cryptocurrency exchange. His operation, which unfolded over two years, involved creating fraudulent websites that closely resembled the authentic Coinbase interface, tricking unwary users into revealing their sensitive account information.
Investigators found that he laundered around $72 million (about ₹600 crore) of stolen digital assets through various trading platforms, ultimately converting these funds into Indian rupees. The ED reported that Tomar’s team enhanced the visibility of their counterfeit sites by manipulating search engine rankings, ensuring that victims were more likely to encounter these fraudulent pages in their searches.
When users attempted to log in to the bogus sites, they were met with misleading error messages that prompted them to contact fake customer support representatives. These impersonators, posing as Coinbase staff, convinced victims to provide security codes or grant access to their computers, which enabled the thieves to drain the compromised accounts.
Luxury Acquisitions and Arrest
Tomar’s illicit gains were funneled into luxury acquisitions such as high-end watches and sports cars, including brands like Lamborghini and Porsche, as well as extravagant overseas travel. He was apprehended at the Atlanta airport in December 2023 upon returning to the U.S. and later pleaded guilty to conspiracy charges in May 2024.
Ongoing Investigations
The ED initiated its investigation following reports of Tomar’s arrest in the U.S., and in February, conducted synchronized raids across Delhi and Mumbai to trace the financial trail of Tomar’s operations. The agency has hinted that further investigations could lead to additional asset seizures or arrests in connection with this international fraud case.
