India Freezes Assets Linked to Man Jailed in US Over $20M Crypto Fraud

India's Enforcement Directorate (ED) has frozen assets worth approximately ₹42.8 crore (about $4.8 million) linked to an Indian national convicted in the United States for arranging a $20 million cryptocurrency fraud scheme. The guy was sentenced to five years (60 months) in prison by a U.S. federal court in North Carolina after pleading guilty to conspiracy to commit wire fraud based on his role in operating a phishing scam that began in June 2021.

The scheme involved creating fake websites that closely imitated the legitimate cryptocurrency exchange Coinbase, including a spoofed version of Coinbase Pro, to deceive victims worldwide into entering their login credentials and two-factor authentication codes.

Once the scammers obtained access to victims' crypto accounts, they transferred the stolen cryptocurrency to wallets controlled by this indian and his co-conspirators. The stolen funds were then converted through various forms of cryptocurrency and cashed out, primarily using peer-to-peer crypto platforms and Indian crypto exchanges, where they were converted into Indian rupees.

The proceeds funded the scammer's costly lifestyle, including purchases of luxury vehicles such as Lamborghinis and Porsches, expensive watches, and international trips to destinations like Dubai and Thailand.

The ED's asset freeze is part of an ongoing domestic investigation that identified substantial sums being transferred to the scammer and his family members' bank accounts in India and investments in immovable property. The agency also conducted raids in Delhi and Mumbai as part of their probe into the case.

This enforcement action aims to curb the dissipation of illicit gains within India while further investigations and legal processes continue.

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