ED Cracks Down on ₹600 Crore Cryptocurrency Fraud Across Multiple Cities
The Enforcement Directorate (ED) has launched a sweeping crackdown on cryptocurrency-related fraud, conducting raids across Delhi, Jaipur, and Mumbai under the Foreign Exchange Management Act (FEMA). The operation targets a massive scam involving illicit crypto conversions worth approximately ₹600 crore.
The Investigation Unfolds
The ED’s probe was triggered by a report detailing the fraudulent activities of Chirag Tomar, an Indian national currently serving a prison sentence in the United States for orchestrating a cryptocurrency scam that defrauded victims of over $20 million (₹144 crore). Tomar and his associates set up spoofed websites that closely resembled legitimate cryptocurrency exchanges, such as Coinbase, to trick users into sharing their login credentials.
How the Scam Worked
Using advanced SEO techniques, the fraudulent websites were pushed to the top of search engine results, making them appear authentic to unsuspecting investors. Once users entered their credentials, the scammers displayed fake account balances and urged them to call a fraudulent customer support number—leading directly to a scam call center operated by Tomar’s network.
With access to victims’ cryptocurrency wallets, the fraudsters swiftly transferred the funds to their own wallets. These stolen assets were then sold on platforms like LocalBitcoins.com and converted into Indian Rupees via local cryptocurrency exchanges.
Money Trail and Seizures
The ED’s investigation has so far uncovered that at least ₹15 crore of the scam proceeds were transferred to bank accounts belonging to Chirag Tomar and his family members. Authorities have frozen multiple bank accounts linked to Tomar’s network, with ₹2.18 crore seized to date.
Additionally, the agency has identified further instances of cryptocurrency fraud involving questionable crypto sales on LocalBitcoins.com and INR conversions through Indian crypto platforms. This points to a larger network of cybercriminals leveraging digital currencies for illicit financial activities.
What’s Next?
The ED continues to probe deeper into the case, with further legal action and potential asset seizures expected in the coming days. As cryptocurrency fraud remains a growing concern, authorities are ramping up efforts to track and dismantle such networks operating within India and beyond.
Stay tuned for updates on this high-stakes investigation as the ED tightens its grip on financial cybercrime in the crypto space.