Web Desk
The U.S. Department of Justice (DOJ) has recovered $7 million from an international cryptocurrency investment scam.
The fraudsters tricked victims into depositing money into fake crypto investment platforms.
Authorities used civil asset forfeiture to seize the stolen funds and have announced plans to return the money to victims.
How the Scam Worked
The criminals created spoofed websites that mimicked real crypto exchanges. These fake platforms displayed false profits to make victims believe their investments were growing.
Scammers used social engineering to gain trust before introducing victims to these sites.
Once the victims invested, they were blocked from withdrawing their money.
Instead, the scammers pressured them to deposit more, using excuses like tax payments or additional fees.
Money Laundering Operation
The stolen funds were funneled through over 75 bank accounts linked to shell companies. The scammers moved the money between multiple banks inside the United States before wiring it overseas.
They disguised these transfers as domestic transactions to avoid detection.
The DOJ investigation revealed that victims’ funds were ultimately sent to accounts controlled by the fraudsters in foreign banks.
Secret Service Crackdown
In June 2023, the U.S. Secret Service seized a portion of the stolen funds from a foreign bank’s U.S. account.
The agency had been investigating international money laundering syndicates linked to crypto investment scams.
Court documents show that U.S. officials were authorized to seize up to $58 million, some of which was linked to Deltec Bank, which held accounts for corporate clients through Mitsubishi UFJ Trust in New York.
However, the exact amount seized remains undisclosed.
Settlement and Victim Compensation
Following a legal dispute, the DOJ reached a settlement with the bank holding the funds. Under the agreement, $7 million was forfeited to the U.S. government.
The DOJ has announced plans to return the money to victims. “The United States will now begin the process of inviting victims to submit petitions for fund recovery,” the department stated.
DOJ’s Fight Against Crypto Fraud
This case highlights the DOJ’s ongoing battle against crypto-related fraud.
As digital scams become more sophisticated, authorities are using asset forfeiture to recover stolen money and dismantle fraud networks.
Victims of this scam will soon have the opportunity to reclaim their lost funds through the DOJ’s compensation process.
