New Delhi, Feb 24 The Directorate of Enforcement (ED) has conducted a series of search operations across Delhi, Jaipur, and Mumbai, under the provisions of the Foreign Exchange Management Act (FEMA). The operations were part of an investigation into a large-scale cryptocurrency fraud, involving the conversion of crypto assets worth approximately Rs. 600 crore at various Indian crypto exchanges, says a press release issued by the agency here on Monday.
The probe was initiated following a newspaper report highlighting the case of Chirag Tomar, an Indian national currently serving a prison sentence in the US for defrauding over $20 million from hundreds of victims. Tomar’s fraudulent activities were linked to spoofed websites that mimicked the legitimate cryptocurrency exchange, Coinbase. These fake sites were designed to appear at the top of search engine results through malicious search engine optimisation techniques, tricking users into entering their login credentials.
Once victims entered their details, the spoofed website displayed incorrect information, prompting users to contact a phone number listed on the site. This number led victims to a call centre operated by Chirag Tomar and his associates. After gaining access to the victims' cryptocurrency accounts, the fraudsters swiftly transferred the holdings to wallets under their control. The stolen cryptocurrency was then sold on platforms like localbitcoins.com and converted into Indian Rupees at local crypto exchanges.
Investigators found that a significant amount of the proceeds, totalling Rs. 15 Crore was transferred to bank accounts belonging to Chirag Tomar and his family members. As part of the search operations, several bank accounts related to the Tomar family have been frozen, with Rs. 2.18 Crore seized so far.
During the search, the ED also uncovered similar fraudulent activities involving the sale of questionable cryptocurrency on localbitcoins.com, followed by conversion into INR through Indian crypto exchanges.
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