Crypto Crackdown: Indian National's Rs 600 Crore Scheme Exposed

The Enforcement Directorate has frozen over Rs 2 crore in bank deposits following searches involving an Indian national implicated in illegally converting cryptocurrency worth around Rs 600 crore. The individual, Chirag Tomar, was involved in spoofing legitimate crypto exchange sites, leading to the unauthorized transfer of cryptocurrencies.

The Enforcement Directorate (ED) announced on Monday that it has frozen bank deposits exceeding Rs 2 crore. This move follows extensive searches across multiple states targeting an Indian national linked to the illicit conversion of cryptocurrency valued at approximately Rs 600 crore using various Indian crypto exchanges.

The operation, carried out under the Foreign Exchange Management Act (FEMA), took place on February 20. Locations included Delhi, Jaipur, and Mumbai. According to the ED, the case centers around the 'conversion' of cryptocurrency via Indian crypto exchanges, with the funds subsequently transferred to beneficiaries.

Investigations revealed that a newspaper report initiated this probe into Chirag Tomar, an Indian national serving a prison sentence in the USA for stealing over USD 20 million. Tomar allegedly exploited fake websites that mimicked trusted crypto exchanges, deceiving users into divulging login details. These details enabled the fraudsters to transfer and sell stolen cryptocurrency, converting it into Indian Rupee. The ED's operation resulted in the discovery of Rs 15 crore received by Tomar and his family, followed by the freezing of several bank accounts.