Feds Seize $7M in Crypto Scam—DOJ Tells Victims: Come Get Your Money

The U.S. Department of Justice (DOJ) has successfully recovered $7 million in funds from a sophisticated cryptocurrency investment fraud scheme and is now inviting victims to claim their share.

Scheme Details:

Perpetrators used social engineering tactics to gain victims’ trust, directing them to fake cryptocurrency investment websites that mimicked legitimate platforms. These sites funneled funds through over 75 bank accounts linked to shell companies. Victims were misled into believing their investments were growing, but attempts to withdraw funds were met with demands for additional payments under false pretenses, such as alleged tax obligations.

Recovery Efforts:

In June 2023, the U.S. Secret Service traced and seized a portion of the stolen funds from a foreign bank account. Following legal proceedings, a settlement was reached, resulting in the forfeiture of $7 million to the United States.

Next Steps for Victims:

The DOJ is now initiating a process to return the recovered funds to the victims. Affected individuals are encouraged to submit petitions to reclaim their stolen assets. For guidance on the petition process, victims should refer to the DOJ’s official announcement. 1

Preventive Measures:

This case underscores the importance of vigilance in cryptocurrency investments. Investors are advised to verify the legitimacy of platforms and be cautious of unsolicited investment opportunities. The DOJ’s proactive approach in this case highlights the government’s commitment to protecting investors and maintaining financial system integrity.