In a recent incident, Coinbase, in collaboration with law enforcement, uncovered a large fraud scheme using its name to steal funds from users.
How the Scam Was Uncovered
The mastermind of the scam was Chirag Tomar, who, along with a network of accomplices, created fake websites like “CoinbasePro.com.” The perpetrators harvested user login credentials and two-factor authentication codes. In more aggressive attacks, they impersonated Coinbase support and used remote access tools to drain actual accounts—sometimes within minutes.
One victim lost over $240,000 in a single incident.
Coinbase's Response and Law Enforcement
When Coinbase's security team detected the fraudulent activity, they moved quickly. Working with law enforcement, the company helped trace stolen assets, identify affected users, and preserve critical digital evidence.
In December 2023, Tomar was arrested at the Atlanta airport. He later pleaded guilty and received a five-year federal prison sentence in 2024. "This case shows how scammers exploit trusted brands," said Coinbase Chief Legal Officer Paul Grewal.
Security in the Crypto World
Unlike cash, crypto leaves a permanent, traceable record. This transparency allowed investigators to follow the money and shut down the operation. While criminals continue to abuse brands like Coinbase, this case highlights the power of blockchain forensics, real-time monitoring, and public-private cooperation.
Coinbase regularly partners with the FBI, U.S. Secret Service, and other agencies to safeguard users and support justice. As Grewal noted, "Our investment in fraud prevention and law enforcement collaboration isn’t just good business—it’s essential to trust in this ecosystem."
This case serves as a clear reminder that working together, we can outsmart even the most sophisticated fraudsters in the crypto landscape.
