The Enforcement Directorate (ED) has conducted raids across multiple locations in India in connection with the illegal conversion of cryptocurrencies worth approximately ₹600 crore. These raids, carried out under the Foreign Exchange Management Act (FEMA), targeted individuals involved in converting cryptocurrency through Indian exchanges and transferring funds to beneficiaries.
Raids Conducted in Multiple States
On February 20, ED officials carried out searches in Delhi, Jaipur (Rajasthan), and Mumbai (Maharashtra). During the operation, authorities froze ₹2 crore found in the bank account of Chirag Tomar, who is one of the key accused in the case.
Investigation Triggered by a Newspaper Report
The investigation began after a newspaper report revealed that Chirag Tomar, an Indian citizen, was serving a prison sentence in the United States. He was convicted in November last year for stealing over $2 million (approximately ₹16.5 crore) from hundreds of victims by creating fake cryptocurrency exchange websites resembling Coinbase.
How the Scam Worked
According to the ED, Tomar and his associates used search engine optimization (SEO) techniques to manipulate search results. This ensured that their fake cryptocurrency websites appeared at the top when users searched for legitimate platforms. The fake websites looked exactly like real ones, except for different contact details.
When users tried logging in, they received an error message. They were then directed to call a support number, which connected them to a call center run by Tomar. Once the fraudsters gained access to victims’ accounts, they transferred the cryptocurrency holdings into their own wallets.
Money Laundering via Indian Crypto Exchanges
The ED’s investigation revealed that the stolen cryptocurrency was sold on the website localbitcoins.com and converted into Indian rupees through Indian crypto exchanges. The money was then deposited into the bank accounts of Tomar and his family members.
Profits from the Fraud
Authorities estimate that Chirag Tomar and his family earned around ₹15 crore from this scam. The ED is continuing its investigation to trace additional funds and other individuals involved in the illegal transactions.
