Indian national convicted of stealing over $20 million through fake Coinbase websites
Indian national convicted of stealing over $20 million through fake Coinbase websites
An Indian national has been convicted for orchestrating a sophisticated cryptocurrency scam, stealing more than $20 million by creating fraudulent websites mimicking the popular cryptocurrency exchange Coinbase.
The scheme, which targeted unsuspecting investors, resulted in significant financial losses and highlighted the increasing risks posed by phishing scams in the crypto space.
According to the legal report, Chirag Tomar, a 31-year-old Indian national, built fake replicas of Coinbase’s website, «CoinbasePro.Com», to trick users into providing their login credentials and transferring funds. Once the victims entered their private information, the stolen credentials were used to drain their accounts, diverting millions of dollars' worth of cryptocurrency to wallets controlled by the scammer.
The scam operated over an extended period, targeting both retail and institutional investors. Authorities uncovered the scheme following complaints from victims who lost substantial assets. The investigation revealed a complex operation, including the registration of multiple fraudulent domains and email campaigns designed to lure users into believing they were interacting with legitimate Coinbase platforms.
The convicted individual was apprehended following cooperation between law enforcement agencies across jurisdictions, highlighting the cross-border nature of cybercrime in the cryptocurrency space. He was sentenced to 60 months in prison. With cryptocurrencies often operating beyond traditional financial boundaries, such scams have posed a challenge for regulators and law enforcement alike.
This conviction serves as a critical reminder of the vulnerabilities faced by cryptocurrency users. Phishing scams involving fake websites have become increasingly common, particularly targeting individuals unfamiliar with digital asset platforms.
Earlier, a Coinbase user lost $1.7 million as a result of a phishing attack. The fraudster pretended to be Coinbase security officers to trick the crypto investor into revealing his passphrase, which is required to access the cryptocurrency wallet.
Coinbase, which has emphasized the importance of user education and two-factor authentication, recently issued new guidelines to help customers detect and avoid fraudulent activity. Now most users trust Coinbase for security issues.
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