The cryptocurrency market isn’t new to scams and hacks. One reason individuals stay away from the industry is the increasing number of scams. Law enforcement across the globe has doubled down on its oversight of the industry. The latest news about an Indian national going to prison for being involved in a cryptocurrency scam is proof of this.
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Details of the $20M Scam and Legal Proceedings
According to recent news by the US Department of Justice, an Indian man, Chirag Tomar, was sentenced to jail for stealing over $20 million from hundreds of victims using a fake website that imitated the cryptocurrency exchange Coinbase.
He was sentenced to 60 months in prison. As U.S. District Judge Kenneth D. Bell ordered, he would then have to deal with two years of supervised release.
The “Pro” version of Coinbase’s exchange was accessible via “Pro.Coinbase.Com.” Court filings reveal that Tomar and his accomplices used CoinbasePro.Com, a similar phony URL, to spoof the Coinbase Pro website. They then built a fake website that looked like the real one.
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Revisiting Tomar’s Arrest
The Indian national was reportedly arrested last year. Just as he entered the United States on December 20, 2023, he was taken into custody at the Hartsfield-Jackson Atlanta International Airport. He entered a guilty plea to wire fraud conspiracy on May 20, 2024. It should be noted that Tomar is still in federal custody and will be sent to a Federal Bureau of Prisons facility when it is designated.
Here’s What Tomar Did With The Profits From The Fake Cryptocurrency Firm
Tomar used the victims’ money to support an extravagant lifestyle. This included purchasing pricey vehicles like Lamborghinis and Porsches and luxury goods like Audemar Piguet watches. In addition, he utilized the funds to pay for vacations to places like Thailand and Dubai.
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