Indian authorities have cracked open a massive cryptocurrency fraud operation, seizing ₹600 crore ($72 million) in illicit funds after raids across Delhi, Jaipur, and Mumbai. The Enforcement Directorate (ED) conducted these raids under the Foreign Exchange Management Act following an investigation triggered by a newspaper report on the activities of Chirag Tomar, who is currently serving a prison sentence in the United States for a separate $20 million fraud.
The scammers operated with digital sleight of hand that would make even seasoned magicians jealous. They created spoofed websites that mimicked legitimate cryptocurrency exchange Coinbase—think of it as crafting a fake storefront that looks identical to the real thing, right down to the logo on the shopping bags. Staying vigilant against such deceptive tactics is essential for protecting your digital investments from sophisticated fraudsters.
Through clever SEO manipulation, these fraudulent sites appeared high in search results, luring unsuspecting victims into their web. When users accessed these counterfeit platforms, they were shown fabricated account information and prompted to call a fake customer support number. This connected them to a fraudulent call center operated by Tomar and his associates, who then proceeded to separate victims from their digital assets faster than you can say “blockchain.” The scammers employed malicious SEO techniques to manipulate search engine results, ensuring their fraudulent sites would appear prominently to potential victims.
Scammers hijacked search results, showing fake crypto accounts that funneled victims straight to their fraudulent call centers.
The ill-gotten cryptocurrency was subsequently sold on localbitcoins.com and converted to Indian Rupees. Approximately ₹15 crore found its way into bank accounts belonging to Tomar and his family members. Authorities have frozen multiple accounts linked to the Tomar family and seized ₹2.18 crore so far.
This case represents just the tip of the iceberg in India’s growing cryptocurrency crime problem. In 2021 alone, Indians visited fraudulent cryptocurrency websites over 9.6 million times. The Amit Bhardwaj case, which involved the infamous GainBitcoin Ponzi scheme, demonstrates how crypto scammers can operate at massive scales before being caught. The ED is currently investigating eight cryptocurrency-related fraud cases, including the GainBitcoin Ponzi scheme that allegedly defrauded over 8,000 people of ₹2,000 crore.
The government’s response has intensified, with the CBI taking over multiple FIRs and conducting nationwide raids at 60 locations connected to various cryptocurrency scams.
