Criminal Investigation Body in India, ED, Freezes 428 Million Indian Rupees in Crypto Scam Case Associated with Chirag Tomar
In a significant move to combat cross-border crypto crime, India's Enforcement Directorate (ED) has frozen assets worth approximately ₹42.8 crore ($4.8 million) in a case involving an Indian national, Chirag Tomar, who was jailed in the U.S. for masterminding a sophisticated $20 million-plus crypto fraud.
Tomar's scheme, which involved mimicking the Coinbase website to steal victims' credentials and drain their wallets, has been a subject of international cooperation with U.S. law enforcement. This cooperation enabled India to freeze assets linked to Tomar, including 18 properties in Delhi and multiple bank accounts, under the Prevention of Money Laundering Act (PMLA).
The ED's coordinated enforcement approach demonstrates its ability to trace and seize illicit digital assets that are converted and concealed through complex laundering channels, including peer-to-peer exchanges and shell companies. This collaboration also enhances information sharing on digital transaction trails, making it possible to disrupt crypto fraud networks operating across borders.
Early findings suggest Tomar's network involved more than just local collaborators. Authorities are digging deeper into potential offshore links in the case. The stolen crypto, valued at around $20 million, was sold on peer-to-peer platforms and converted into rupees, later invested in properties and multiple bank accounts.
The case underscores the need for robust security measures when using crypto platforms. It serves as a warning for anyone using crypto in high-risk spaces and a reminder of the growing intersection between crypto crime and cross-border enforcement.
As the ED expands the probe and focuses on untangling the rest of Tomar's financial web, crypto traders and investors will be watching closely to see how this case reshapes future enforcement actions. The ED's order freezes Tomar's domestic assets while U.S. proceedings continue, preventing stolen funds from disappearing through legal loopholes.
This case serves as another example of cross-border crypto crime enforcement and sets a precedent for future efforts in this area. It is a clear demonstration of how international cooperation can effectively address the challenges posed by the decentralized and transnational nature of digital currencies.
The ED's investigation into Chirag Tomar's crypto fraud case has expanded, with authorities now exploring potential offshore links. The stolen crypto, converted into rupees and invested in properties and bank accounts, is a testament to the need for enhanced cybersecurity measures in the context of digital transactions, especially in high-risk spaces involving cryptocurrencies.
