India Files Charges Against 8 Defendants in Alleged $20 Million Coinbase Spoofing Scam

India's Directorate of Enforcement has filed charges against eight defendants in an alleged $20 million Coinbase spoofing scam. The scheme involved creating fake websites to steal credentials and crypto assets. One defendant, Chirag Tomar, was previously sentenced in the U.S. for his role. Indian authorities have seized $6.8 million in assets as the country continues to lead the world in crypto adoption.

Coinbase spoofing scheme

• ▪After gaining access to accounts, the group allegedly transferred victims' cryptocurrency to wallets they controlled.
• ▪One of the defendants, Chirag Tomar, was previously sentenced in the U.S. to 60 months in prison and two years of supervised release for his role.
• ▪India's Directorate of Enforcement (ED) filed charges against Chirag Tomar and seven others for a Coinbase spoofing scheme that allegedly stole over $20 million.
• ▪The defendants allegedly created spoofed websites mimicking Coinbase's platform to steal user login credentials and two-factor authentication codes.

Money laundering investigation

• ▪The stolen cryptocurrency was allegedly moved through multiple wallets and converted into Indian rupees using peer-to-peer transactions.
• ▪Proceeds from the fraud were allegedly deposited into bank accounts linked to Chirag Tomar, his family, and associates, then layered through multiple accounts.
• ▪The ED's investigation began after Chirag Tomar's arrest in the U.S., with evidence obtained from U.S. authorities via a Mutual Legal Assistance Treaty.

Asset seizure actions

• ▪The laundered funds were allegedly used to purchase movable and immovable assets.
• ▪India's ED has provisionally attached 64.55 crore rupees ($6.8 million) in assets connected to the case.

India crypto adoption trends

• ▪The legal actions occur as India ranks among the world's largest crypto markets and held the top position in global crypto adoption for a third consecutive year.
• ▪The broader South Asia region saw an 80% increase in crypto adoption from January to July 2025 compared to the same period in the previous year.
• ▪About three months prior, India's Central Bureau of Investigation arrested Ayush Varshney, a co-founder of Darwin Labs, for his alleged role in the GainBitcoin scheme.

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