Cryptocurrency investors are in danger: Millions of dollars were scammed through a fake crypto exchange.

This major fraud case in the cryptocurrency world has once again proven that investors need to be cautious. Chirag Tomar and his accomplices used a fake website mimicking Coinbase since June 2021 to seize the cryptocurrencies of hundreds of victims. This incident contains important lessons regarding cryptocurrency security and points that users need to pay attention to.

Fake Site Erased Millions of Dollars

According to a statement from the U.S. Department of Justice, Indian citizen Chirag Tomar was sentenced to 5 years in prison for the fraud he committed through a website that imitated the cryptocurrency exchange Coinbase. The decision made by U.S. District Judge Kenneth D. Bell includes 60 months of imprisonment as well as two years of supervised release.

It was reported that Tomar spent the money obtained from victims on expensive watches and luxury vehicles such as Lamborghinis and Porsches. Additionally, it was learned that he used some of the stolen funds for trips to places like Dubai and Thailand.

The fraud scheme began when Tomar and his accomplices created a website that mimicked Coinbase Pro. This fake site tricked users into entering their login credentials and two-factor authentication codes. In some cases, the fraudsters posed as Coinbase customer service representatives.

The fraudsters, who gained access to the victims' accounts, transferred the cryptocurrencies to wallets under their control. The stolen funds were then distributed to various addresses. A victim from North Carolina lost over $240,000 due to this fraud.

This incident shows that cryptocurrency investors need to be more vigilant about security. Experts advise users to use official websites, avoid clicking on suspicious links, and be extremely careful when sharing their credentials.