India’s Enforcement Directorate (ED) has escalated its investigation into a massive cryptocurrency fraud by freezing assets worth ₹42.8 crore (approximately US$4.8 million) belonging to convicted fraudster Chirag Tomar, his relatives, and associated entities. The enforcement action, carried out under the Prevention of Money Laundering Act (PMLA), includes the attachment of 18 immovable properties located in Delhi, as well as multiple bank accounts.
According to the ED’s official press release dated August 2, 2025, the assets were identified as proceeds of crime derived from a sophisticated international scam that targeted cryptocurrency investors. This move marks a significant expansion of the investigation, which previously resulted in a seizure of ₹2.18 crore during raids in February 2025 across Delhi, Mumbai, and Jaipur.
Crypto phishing scheme defrauded U.S. users
The case against Chirag Tomar first gained international attention when he was arrested in the United States in December 2023 at Hartsfield-Jackson Atlanta International Airport. Tomar was the key architect behind a crypto phishing scam that ran from mid-2021 to late-2023, primarily targeting users of the popular exchange Coinbase.
Tomar and his accomplices created convincing fake versions of Coinbase Pro’s website using domains like “CoinbasePro.com,” designed to deceive users into entering their login credentials and two-factor authentication codes. The compromised information was then used to gain unauthorized access to user accounts and siphon off funds.
U.S. prosecutors estimated the total theft to be in excess of $37 million, affecting hundreds of individuals. Tomar pleaded guilty to wire fraud conspiracy in May 2024 and was sentenced to five years in federal prison in October 2024.
Illicit gains funneled back into Indian real estate and banking system
The ED’s investigation has since uncovered how the stolen funds were laundered back into India. A substantial portion of the illicit proceeds was routed through peer-to-peer cryptocurrency exchanges, where they were converted to Indian rupees. These funds were then funneled into accounts held by Tomar’s immediate family and shell companies, and used to acquire high-value real estate.
The agency believes the scale of the laundering operation could exceed ₹600 crore, involving complex cross-border transactions and layered financial trails. Authorities say this case underscores the growing misuse of crypto platforms for illicit finance and highlights the urgent need for coordinated global regulation.
With the attachment of assets totaling nearly ₹45 crore, the ED has signaled its intent to continue aggressive enforcement against those who exploit digital finance infrastructure for criminal gain. Investigators have hinted at additional rounds of asset tracing and possible identification of co-conspirators.
This high-profile case is one of the most significant crypto-linked financial crimes under investigation in India. It has prompted discussions around tightening compliance standards for crypto exchanges and enhancing cooperation with international enforcement agencies.
As the probe deepens, more disclosures are expected regarding the network of individuals and institutions that may have facilitated the laundering process.
