The Enforcement Directorate (ED) on Monday announced the freezing of bank deposits worth over Rs 2 crore after conducting multi-state raids against an Indian national accused of illegally converting crypto assets worth Rs 600 crore through various Indian crypto exchanges.
Massive Crypto Conversion Scam Unearthed
The searches, conducted on February 20 in Delhi, Jaipur (Rajasthan), and Mumbai (Maharashtra), were executed under the Foreign Exchange Management Act (FEMA).
According to the ED, the case revolves around the illegal conversion of cryptocurrency worth Rs 600 crore, followed by the transfer of funds to unknown beneficiaries.
Key Accused: Chirag Tomar
The investigation was initiated based on a news report detailing that an Indian national, Chirag Tomar, had been sentenced to prison in the USA for stealing more than USD 20 million from victims using fake or spoofed websites mimicking the legitimate crypto exchange Coinbase.
Fraudulent Website Tactics
The probe revealed that fraudsters used Search Engine Optimization (SEO) techniques to ensure that spoofed websites appeared at the top of search results. These fake websites looked identical to trusted sites, except for altered contact details.
When users attempted to log in, their credentials were rejected, prompting them to contact the fake customer support number listed on the spoofed website. The number connected victims to call centers managed by Tomar, where scammers obtained access to their accounts and stole crypto holdings.
How Stolen Crypto Was Laundered
- The stolen cryptocurrency was transferred to fraud-controlled wallets.
- The assets were sold on the website LocalBitcoins.com.
- The converted funds were transferred to Indian Rupees through Indian crypto exchanges.
- The money was eventually routed to Tomar’s and his family’s bank accounts.
Rs 15 Crore Identified, Rs 2.18 Crore Frozen
So far, Rs 15 crore received by Tomar and his family through this fraudulent scheme has been identified. During the raids, multiple bank accounts linked to the Tomar family were frozen, including deposits amounting to Rs 2.18 crore.
The ED also uncovered similar fraudulent modus operandi involving the sale of “doubtful” crypto on LocalBitcoins and its conversion to Indian Rupees through Indian crypto exchanges.
Ongoing Investigation
Authorities are now probing further into the network of exchanges and financial transactions involved in the scam. The ED is expected to intensify its investigation to trace additional laundered funds and identify all involved parties.
This case marks yet another high-profile cry****pto scam under investigation in India, emphasizing the urgent need for tighter regulations o******n digital currency transactions**.
