- The U.S. Department of Justice (DOJ) seized $7 million from a fraudulent cryptocurrency scheme and is urging victims to submit petitions to reclaim their stolen funds
- Fraudsters tricked victims into investing in cryptocurrency through fake platforms, funds went through over 75 bank accounts linked to shell companies, and disguised international transfers.
The U.S. Department of Justice (DOJ) has recovered $7 million linked to a global cryptocurrency scam. The funds were seized through civil asset forfeiture, and the officials plan to return them to those affected.
On March 21, the DOJ announced the crackdown of a major crypto scam and urged victims to start submitting petitions to claim their stolen money.
The Scammers Method of Operation
The court documents showed that the scammers used social engineering to trick victims into investing in cryptocurrency through different fake websites. They built trust over time before introducing the victims to fraudulent platforms designed to look like legitimate crypto exchanges.
These websites deceived victims by showing them fake profits while secretly redirecting funds through over 75 bank accounts linked to shell companies. When victims wanted to withdraw their money, the scammers pressured them to send more additional payments, claiming they owed taxes on their ‘supposed’ earnings.
After the scammers received the funds, they laundered the money quietly by transferring it to different accounts before eventually moving it overseas. In a bid to hide the true sources of these transactions, they disguised the wire transfers as domestic, even though the money was being sent to foreign banks.
DOJ Confirms Plans to Return Forfeited Funds to Victims
In June 2023, Secret Service agents seized a part of the stolen investment funds from an account held by a foreign bank. The U.S. government then filed a civil forfeiture case in the District Court to take legal ownership of the stolen money.
The bank that owned the account filed a claim, leading to a settlement in which $7 million was forfeited to the U.S. This agreement allows victims to request compensation for their losses. The officials went ahead to notify all individuals and organizations that might have been affected by the scam that they can now claim their money and they’ve been given a chance to forfeiture in court both directly and through online announcements.
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