Recent actions by Indian authorities serve as a reminder of the risks present in the digital world. The country's Enforcement Directorate executed an asset freeze linked to a Coinbase impersonation scheme.
Reasons for Asset Freeze by Indian Authorities
India's Enforcement Directorate (ED) announced a significant breakthrough in combating financial crimes. In an official press release, ED confirmed the freezing of approximately $4.8 million in assets belonging to Chirag Tomar, identified as the mastermind behind a deceptive fake Coinbase website.
Uncovering the Massive Fake Coinbase Scam
Chirag Tomar's operation was not small in scale: reports indicate he managed to steal an estimated $20 million in crypto assets over a period from mid-2021 to late 2023 by creating a fraudulent website that imitated the legitimate Coinbase.
How the Prevention of Money-Laundering Act Fights Crypto Crimes
The Prevention of Money-Laundering Act (PMLA) is a powerful legal tool in India, aimed at preventing and controlling money laundering. In this case, it allowed ED to trace and freeze assets derived from the illegal proceeds of the Coinbase scam.
The freezing of $4.8 million in assets by Indian authorities linked to the fake Coinbase scam is a significant victory in addressing cryptocurrency fraud. It highlights the importance of regulations governing digital currencies and serves as a warning to potential fraudsters.
