ED Exposes Rs 600 Crore Cryptocurrency Scam, Seizes Rs. 2.18 Crore
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Synopsis
The ED has conducted extensive search operations in Delhi, Jaipur, and Mumbai as part of an investigation into a Rs 600 crore cryptocurrency fraud. The agency has frozen Rs 2.18 crore linked to the scam, which involved conspirators impersonating legitimate platforms.
Key Takeaways
- ED's investigation involves a Rs 600 crore crypto scam.
- Chirag Tomar linked to fraudulent activities.
- Fake websites used to trick victims.
- Rs 15 crore linked to Tomar's family accounts.
- Seizure of Rs 2.18 crore during operations.
New Delhi, Feb 24 (NationPress) The Directorate of Enforcement (ED) has executed a series of search operations in Delhi, Jaipur, and Mumbai, under the regulations of the Foreign Exchange Management Act (FEMA). These operations are part of an investigation into a massive cryptocurrency fraud, involving the conversion of crypto assets valued at approximately Rs. 600 crore across various Indian crypto exchanges, as noted in a press release from the agency on Monday.
The investigation began following a newspaper article that brought attention to the case of Chirag Tomar, an Indian national currently imprisoned in the US for defrauding over $20 million from numerous victims. Tomar's fraudulent scheme was associated with counterfeit websites that imitated the legitimate cryptocurrency exchange, Coinbase. These fake sites utilized nefarious search engine optimization tactics to appear prominently in search engine results, deceiving users into entering their login information.
After victims submitted their credentials, the spoofed website presented misleading information, leading users to a contact number listed on the site. This number directed victims to a call center run by Chirag Tomar and his accomplices. Once they gained access to the victims' cryptocurrency accounts, the fraudsters quickly moved the assets to wallets they controlled. The stolen cryptocurrency was then liquidated on platforms such as localbitcoins.com and converted into Indian Rupees via local crypto exchanges.
Investigators discovered that a significant portion of the proceeds, amounting to Rs. 15 Crore, was transferred to bank accounts associated with Chirag Tomar and his family members. During the search operations, multiple bank accounts related to the Tomar family have been frozen, with Rs. 2.18 Crore seized thus far.
Additionally, the ED uncovered similar fraudulent schemes involving the sale of dubious cryptocurrency on localbitcoins.com, which were subsequently converted into INR through Indian crypto exchanges.
