Consumer Protection Tuesday: How We Helped Take Down a $20M Spoofing Scheme That Exploited Coinbase’s Brand

One of the most high-impact cases we supported in 2024 involved the takedown of Chirag Tomar, who ran a global spoofing scheme that stole more than $20 million in crypto by impersonating Coinbase.

Tomar and his co-conspirators created fake websites like “CoinbasePro.com” to trick users into handing over login credentials and two-factor authentication codes. In some cases, they posed as Coinbase customer support and used remote access tools to drain real user accounts. Victims lost hundreds of thousands in minutes—including one individual who was defrauded of over $240,000 in a single attack.

When we learned of the activity, we worked quickly to help law enforcement trace stolen funds, identify victims, and preserve key evidence. In December 2023, Tomar was arrested at the Atlanta airport. He pleaded guilty in 2024 and was sentenced to five years in federal prison.

This case was part of a larger pattern we’ve seen: criminals misusing trusted brands to defraud consumers at scale. But unlike cash—which remains the #1 tool for illicit finance worldwide, accounting for up to $2 trillion annually in laundered money—crypto leaves a permanent, traceable trail. That’s why you hear about crypto crime so often: not because it’s more common, but because it’s easier to uncover and stop.

Working closely with agencies like the U.S. Secret Service and FBI, we helped secure justice in this case and protected countless other users from falling victim to the same trap.

We’re proud of the role Coinbase played here. It reflects our broader approach: investing in onchain forensics, real-time fraud detection, and direct partnerships with law enforcement to protect consumers—on and off our platform.

As we reflect on wins with law enforcement, this case stands out as a powerful example of what’s possible when industry and government team up to fight cybercrime.