US Government Recovers $7M in Crypto Investment Fraud; Victims Can Now File Claims

The United States has successfully recovered $7 million from an international crypto asset investment fraud scheme using civil asset forfeiture. The recovered funds were seized from a foreign bank account and will now be available for victims to claim.  How the Crypto Scam Worked According to the official statement, the perpetrators employed social engineering tactics to build trust with victims before introducing them to fraudulent crypto investments. They directed victims to spoofed websites designed to resemble legitimate trading platforms. These fake sites falsely displayed substantial returns, tricking investors into believing they were making profits. However, when victims attempted to withdraw their funds, the scammers used deceptive tactics such as claims that taxes were owed on the profits. As a result, they coerced the victims into depositing even more money.  Notably, the criminals laundered the victims' funds through a network of over 75 bank accounts registered under the names of shell companies. The perpetrators made the transfers appear domestic to disguise the movement of funds, even though they ultimately sent the money to accounts abroad. In June 2023, U.S. Secret Service agents seized a portion of the stolen funds from a foreign bank account. The government filed a civil asset forfeiture complaint in U.S. District Court, notifying potential property owners and allowing time to contest the forfeiture.  The case settled with the foreign bank forfeiting $7 million to the U.S. government. Now, this will allow victims to petition for the return of the funds they lost. Submitting Claims for Compensation The U.S. government has begun the process of inviting victims of the scheme to submit petitions for the recovery of the stolen funds. The U.S. Attorney’s Office for the Eastern District of Virginia, along with the U.S. Secret Service, is overseeing the process. Specifically, affected individuals can file a complaint via the provided email contact: [email protected] to submit their claims. https://twitter.com/EDVAnews/status/1903203210216583585