ED Uncovers Rs. 600 Crore Crypto Fraud 33s60 Seizes Rs. 2.18 Crore in Search Operations

During the search, the ED also uncovered similar fraudulent activities involving the sale of questionable crypto. 4q424q

By IANS | Updated: 25 February 2025 19:50 IST

ED Uncovers Rs. 600 Crore Crypto Fraud, Seizes Rs. 2.18 Crore in Search Operations

Photo Credit: Unsplash/ Bermix Studio 2w1x4m

The operations were part of an investigation into a large-scale cryptocurrency fraud

Highlights

The probe was initiated following a news report highlighting the case
Scammers created fake sites to steal from people
Several bank s related to the Tomar family have been frozen

ment

The Directorate of Enforcement (ED) has conducted a series of search operations across Delhi, Jaipur, and Mumbai, under the provisions of the Foreign Exchange Management Act (FEMA). The operations were part of an investigation into a large-scale cryptocurrency fraud, involving the conversion of crypto assets worth approximately Rs. 600 crore at various Indian crypto exchanges, says a press release issued by the agency here on Monday.

The probe was initiated following a newspaper report highlighting the case of Chirag Tomar, an Indian national currently serving a prison sentence in the US for defrauding over $20 million (roughly Rs. 144 crore) from hundreds of victims. Tomar's fraudulent activities were linked to spoofed websites that mimicked the legitimate cryptocurrency exchange, Coinbase. These fake sites were designed to appear at the top of search engine results through malicious search engine optimisation techniques, tricking s into entering their credentials.

Once victims entered their details, the spoofed website displayed incorrect information, prompting s to a phone number listed on the site. This number led victims to a call centre operated by Chirag Tomar and his associates. After gaining access to the victims' cryptocurrency s, the fraudsters swiftly transferred the holdings to wallets under their control. The stolen cryptocurrency was then sold on platforms like localbitcoins.com and converted into Indian Rupees at local crypto exchanges.

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Investigators found that a significant amount of the proceeds, totalling Rs. 15 Crore was transferred to bank s belonging to Chirag Tomar and his family . As part of the search operations, several bank s related to the Tomar family have been frozen, with Rs. 2.18 Crore seized so far.

During the search, the ED also uncovered similar fraudulent activities involving the sale of questionable cryptocurrency on localbitcoins.com, followed by conversion into INR through Indian crypto exchanges.

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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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