India Freezes ₹42.8 Crore in Assets Linked to Convicted Crypto Scam Perpetrator

India's Enforcement Directorate (ED) has provisionally attached assets worth ₹42.8 crore (approximately $4.8 million) linked to Chirag Tomar, an Indian national currently serving a five-year prison sentence in the U.S. for a $37 million cryptocurrency scam. The assets, including 18 properties in Delhi and bank account balances, were frozen under the Prevention of Money Laundering Act (PMLA) following an investigation into the fraudulent activity. This marks an escalation from a prior asset freeze of ₹2.18 crore in February 2025 [1].

Tomar’s scam, which operated from mid-2021 to late 2023, involved creating fake websites that imitated the legitimate cryptocurrency platform Coinbase Pro. These included domains such as “CoinbasePro.Com,” which were used to lure victims into entering their login credentials and two-factor authentication codes. Once the information was captured, Tomar’s team gained access to victims’ accounts and siphoned off their crypto assets. U.S. prosecutors confirmed that the scheme defrauded hundreds of victims globally, with total stolen funds exceeding $37 million [1].

Tomar was arrested in December 2023 at Hartsfield-Jackson Atlanta International Airport and pleaded guilty in May 2024 to wire fraud conspiracy. In October 2024, he was sentenced to five years in prison [1]. Despite his conviction in the U.S., the ED has continued its investigation into the flow of illicit funds into India. The stolen cryptocurrency was converted via peer-to-peer exchanges and funneled into bank accounts controlled by Tomar’s family and shell companies. These funds were then used to purchase luxury real estate in Delhi, highlighting a sophisticated laundering operation [1].

The ED has traced the movement of money through multiple international transactions, conversions, and property deals to obscure the origins of the stolen assets. Officials estimate that the total value of the laundering strategy could exceed ₹600 crore. The agency emphasized its commitment to tracking these assets and identifying any potential accomplices. An ED official stated, “We are on the money trail and the investigation will be expanded,” signaling an ongoing effort to dismantle the financial infrastructure supporting the scam [1].

This case has raised broader concerns about the vulnerability of cryptocurrency platforms to large-scale fraud and money laundering. The use of spoofed websites and manipulated search engine results demonstrates how cybercriminals can exploit digital infrastructure to deceive investors. With limited recourse for victims once their crypto assets are stolen, the incident underscores the need for stronger regulatory oversight and consumer protection measures in the crypto space [1].

India’s authorities have shown a clear intent to strengthen anti-money laundering enforcement in the digital finance sector. The ED’s actions reflect a growing focus on cross-border financial crimes, particularly those involving cryptocurrency. Collaboration with international enforcement agencies is also playing a critical role in tracing and confiscating illicit assets. As the investigation continues, further asset tracing and legal proceedings are expected, signaling a broader crackdown on digital fraud across jurisdictions [1].

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[1] India Freezes ₹42.8 Crore In Assets Linked To Convicted (https://financefeeds.com/india-freezes-%E2%82%B942-8-crore-in-assets-linked-to-convicted-crypto-fraudster-chirag-tomar/)