In one of the most impactful enforcement cases of 2024, Coinbase helped federal authorities dismantle a $20 million spoofing operation that exploited the company’s brand.
The scam’s mastermind, Chirag Tomar, and his network created fake websites like “CoinbasePro.com” to harvest user login credentials and two-factor authentication codes. In more aggressive attacks, they impersonated Coinbase support and used remote access tools to drain real accounts—sometimes within minutes.
One victim alone lost over $240,000 in a single incident.
How the Investigation Unfolded
When Coinbase’s security team detected the fraudulent activity, they moved fast. Working with law enforcement, the company helped trace stolen assets, identify affected users, and preserve critical digital evidence.
In December 2023, Tomar was arrested at the Atlanta airport. He later pleaded guilty and received a five-year federal prison sentence in 2024.
“This case shows how scammers exploit trusted brands,” said Coinbase Chief Legal Officer Paul Grewal. “But crypto also gives us tools to track and stop fraud in ways that cash never could.”
Why Crypto Crime Is Easier to Detect—And Stop
Unlike cash, crypto leaves a permanent, traceable record. That transparency allowed investigators to follow the money and shut down the operation.
While criminals continue to abuse brands like Coinbase, this case highlights the power of blockchain forensics, real-time monitoring, and public-private cooperation.
Coinbase’s Ongoing Commitment to Consumer Safety
Coinbase regularly partners with the FBI, U.S. Secret Service, and other agencies to safeguard users and support justice.
“Our investment in fraud prevention and law enforcement collaboration isn’t just good business—it’s essential to trust in this ecosystem,” Grewal said.
As the crypto landscape matures, this takedown is a clear reminder: working together, we can outsmart even the most sophisticated fraudsters.
Source
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/how-coinbase-helped-take-down-a-20m-crypto-scam-using-its-own-name/