ED cracks down on ₹600 crore cryptocurrency fraud across multiple cities including Delhi and Mumbai

The Enforcement Directorate (ED) has launched a major crackdown on cryptocurrency-related fraud, conducting search operations across Delhi, Jaipur, and Mumbai under the Foreign Exchange Management Act (FEMA). The raids, aimed at uncovering a large-scale scam involving illicit crypto conversions worth approximately ₹600 crore, were part of an ongoing investigation, the agency confirmed in a press release on Monday.

The probe was triggered by a newspaper report detailing the fraudulent activities of Chirag Tomar, an Indian national currently serving a prison sentence in the US for defrauding over $20 million (approx. ₹144 crore). Tomar’s scam involved spoofed websites impersonating the legitimate cryptocurrency exchange, Coinbase.

According to investigators, these fraudulent sites were manipulated to appear at the top of search engine results through malicious SEO techniques, deceiving users into sharing their login credentials. Once victims entered their details, they were shown incorrect account information and urged to call a fake customer support number—which connected them directly to a fraudulent call centre run by Tomar and his associates.

Once the fraudsters gained access to victims’ cryptocurrency accounts, they swiftly transferred the assets to wallets under their control. The stolen funds were then sold on localbitcoins.com and converted into Indian Rupees via local crypto exchanges.

The ED’s investigation revealed that a significant chunk of these illegal proceeds—₹15 crore—was transferred to bank accounts belonging to Chirag Tomar and his family members. Authorities have since frozen multiple bank accounts linked to the Tomar family, with ₹2.18 crore seized so far.

During its search operations, the ED also discovered other instances of cryptocurrency fraud involving questionable crypto sales on localbitcoins.com, followed by conversion into INR via Indian crypto platforms. This suggests a broader network of cybercriminals exploiting digital currencies for illicit financial activities.

The ED continues to investigate the case, with more seizures and legal actions expected in the coming days.