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- The U.S. Department of Justice (DOJ) has seized over $6 million in cryptocurrency linked to a fraudulent investment scheme
- The perpetrators, based in Southeast Asia, tricked U.S. victims into transferring funds via fake crypto investment platforms
- The DOJ and FBI tracked the stolen funds using blockchain technology and secured the assets
The U.S. government recently announced that it has seized over $6 million in cryptocurrency tied to a confidence scheme that targeted American investors. The scammers, operating out of Southeast Asia, lured victims into investing in fake crypto platforms, only to steal their assets. The Department of Justice (DOJ) worked with the FBI to trace the funds and secure the stolen assets, illustrating authorities’ improved ability to track and seize crypto assets.
International Fraud Uncovered
According to the DOJ, the perpetrators used various manipulative tactics, such as contacting victims through misdirected texts or dating apps, and eventually convinced them to invest in fraudulent cryptocurrency platforms. This is in line with a growth in romance and confidence scams in recent years, which the likes of the FBI has warned about.
The scam allowed victims to believe they were making significant returns, but the funds were ultimately routed to the scammers’ crypto wallets, with U.S. Attorney Matthew M. Graves noting, “These fraudsters deceived U.S. citizens into thinking they were making legitimate investments when, in reality, their money was being stolen.”
Blockchain Tracking Leads to Recovery
The FBI’s Virtual Asset Unit played a key role in identifying the fraudulent wallets by following the blockchain trail; the stolen funds were spread across several wallets, but authorities successfully traced and seized them before they could be sent to mixing services. “While digital currencies present new challenges, we’re committed to investigating these cases and recovering lost assets,” said FBI Special Agent Joseph E. Carrico when commenting on the case.
This operation is part of broader efforts by U.S. law enforcement to combat rising crypto-related fraud, which cost U.S. investors tens of billions of dollars in 2023 alone.
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