Chirag Tomar, a 31-year-old Indian citizen, was sentenced to five years in federal prison for orchestrating a cryptocurrency fraud scheme that defrauded hundreds of victims out of more than $20 million.

U.S. District Judge Kenneth D. Bell handed down the sentence, which also included two years of supervised release.

Scammers Imitate Coinbase to Steal Millions

According to court documents, Tomar and his co-conspirators executed the fraud by “spoofing” a website designed to imitate the legitimate cryptocurrency exchange Coinbase.

From June 2021, the group set up a fraudulent version of the exchange’s professional trading site, Pro.Coinbase.com, using a fake URL, CoinbasePro.com. Victims who attempted to log into their Coinbase accounts were tricked into providing their login credentials.

One of the tactics used involved impersonating Coinbase customer service representatives and convincing victims to hand over two-factor authentication (2FA) codes. In other instances, fraudsters instructed these individuals to install remote desktop software that would give them full control of their computers.

Tomar used the ill-gotten credentials to access multiple victim accounts and transfer funds to wallets under his control. He then converted the cryptocurrency into other digital assets, moving them between several wallets to hide the transactions. Eventually, the funds were converted into cash and distributed amongst the criminal group.

The 31-year-old used the stolen money to fund a lavish lifestyle, purchasing luxury watches like Audemars Piguet, high-end vehicles like Lamborghinis and Porsches, and traveling to destinations such as  Dubai and Thailand.

$240,000 Theft and Arrest

The scheme impacted targets from all over the world, including those based in North Carolina’s Western District. In February 2022, a local attempted to access his Coinbase account through the spoofed site. The fake website instantly alerted them that their account was locked and directed them to call a number provided to reach a fake Coinbase representative.

The supposed representative then deceived t