The Directorate of Enforcement (ED) has conducted extensive search operations across Delhi, Jaipur, and Mumbai, in connection with a large-scale cryptocurrency fraud. The operations were carried out under the Foreign Exchange Management Act (FEMA), targeting the illegal conversion of cryptocurrency assets worth approximately Rs. 600 crore on various Indian crypto exchanges.
Investigation Sparks from US Fraud Case
The investigation was triggered by a report about Chirag Tomar, an Indian national currently serving time in the US for a multi-million-dollar fraud scheme. Tomar defrauded over $20 million (around Rs. 144 crore) from hundreds of victims. His fraudulent activities were linked to fake cryptocurrency exchange websites designed to appear legitimate, such as the widely-used Coinbase platform.
These fake websites used malicious search engine optimization (SEO) tactics to rank high on search engines. This tricked users into thinking the sites were legitimate, leading them to enter their login credentials. Once the victims submitted their details, the fake site displayed incorrect information, urging users to call a number listed on the page. This number led to a call center operated by Tomar and his associates.
How the Fraud Unfolded
Once the fraudsters gained access to the victims’ accounts, they transferred the stolen cryptocurrency to wallets they controlled. The funds were then quickly converted into Indian Rupees at local crypto exchanges, with much of the money laundered via platforms like localbitcoins.com.
The investigation revealed that Rs. 15 crore of the proceeds had been transferred to various bank accounts belonging to Tomar and his family members. As part of the operation, the ED froze several bank accounts linked to the Tomar family, seizing Rs. 2.18 crore so far.
Uncovering Additional Fraudulent Activity
During the search operations, the ED also uncovered further fraudulent schemes involving the sale of questionable cryptocurrency. These were similarly processed through localbitcoins.com, then converted into Indian currency at local crypto exchanges.
The ED’s investigation highlights the growing concern over the use of cryptocurrency in fraudulent activities. With the rise of digital currency exchanges, criminals have increasingly exploited these platforms for illegal transactions and money laundering.
ED’s Ongoing Efforts and Impact
These operations demonstrate the ED’s continued efforts to combat cybercrime and financial fraud in India. While Tomar’s case initially led investigators down this path, the ongoing probe is likely to uncover more details about the larger network involved in the scam.
This latest operation serves as a reminder to cryptocurrency users to be vigilant about the platforms they use and the risks of falling victim to fraudulent schemes.
(This story has not been edited by WebUmang staff and is auto-generated from a syndicated feed.)
