ED Cracks Down on Massive Crypto Fraud: Rs. 600 Crore Laundered through Fake Websites and Indian Crypto Exchanges
(Judicial Quest News Network)
The Enforcement Directorate (ED) has launched a major operation, conducting searches at multiple locations in Delhi, Jaipur, and Mumbai on February 20, 2025, under the Foreign Exchange Management Act (FEMA), 1999. The investigation revolves around the conversion of approximately Rs. 600 Crore worth of cryptocurrency across Indian crypto exchanges, with the illicit funds being transferred to various beneficiaries.
The probe was triggered by a report about Chirag Tomar, an Indian national imprisoned in the United States for defrauding hundreds of victims of over $20 million. Tomar’s scheme involved creating fake cryptocurrency exchange websites that mimicked the trusted Coinbase platform. These spoofed websites were strategically placed at the top of search results using search engine optimization techniques, fooling users into entering their login credentials.
Once victims entered their details, they were redirected to a fraudulent call centre operated by Tomar, where scammers gained access to their accounts and swiftly transferred their cryptocurrency holdings. The stolen funds were then sold on localbitcoins.com and converted into Indian Rupees via Indian crypto exchanges.
To date, investigations have revealed that Tomar and his family received Rs. 15 Crore through this illegal operation. During the search, the ED froze several bank accounts linked to Tomar’s family, amounting to Rs. 2.18 Crore. Further searches also uncovered additional illicit activities involving the sale of questionable cryptocurrency on local bitcoins and its conversion to INR on Indian exchanges.
The investigation is ongoing, with further developments expected.
