The United States Department of Justice has announced a significant recovery of $7 million from a global cryptocurrency investment scam.
The scam involved the creation of fake trading platforms that mimicked legitimate cryptocurrency exchanges. Scammers contacted victims, gained their trust, and encouraged them to invest. Once funds were deposited, victims were shown false profits to convince them their investments were growing.
However, when victims attempted to withdraw their money, scammers blocked access and pressured some into sending more funds under the false claim that they owed taxes or fees.
The stolen money was funneled through more than 75 bank accounts registered under shell companies. The transfers were disguised as domestic wire transactions, but the funds were actually sent to a foreign bank. The US Secret Service launched an investigation and, in 2023, seized some of the stolen funds from a bank outside the US. To recover the money, officials filed a civil forfeiture action in a US District Court.
During the legal process, the foreign bank that held the seized funds also filed a claim to retain the money. After negotiations, US authorities reached a settlement that allowed them to secure $7 million for victims.
The US Secret Service is now asking those affected by the scam to come forward and submit claims to recover their losses. Officials continue to investigate similar fraudulent schemes targeting cryptocurrency investors. The rise in cryptocurrency-related scams has been noted by law enforcement agencies worldwide. Organized cybercriminal groups are using advanced methods to target investors, including spoofed text messages, impersonation of major crypto exchanges, and the use of malware to steal digital assets. Cybersecurity specialists have indicated fresh malware dangers, such as a cryptocurrency-stealing virus concealed in illegal copies of Trading View Premium and a remote access trojan employed to extract digital assets from various cryptocurrency wallet extensions on google Chrome.
Officials persist in addressing crypto-related fraud and are advising investors to confirm the legitimacy of any platform prior to transferring funds. The recovery of $7 million is a significant step in returning stolen funds to victims and serves as a reminder of the importance of vigilance in the cryptocurrency investment landscape. This event underscores the need for investors to be cautious and verify the authenticity of investment platforms to avoid falling prey to such scams. The efforts by law enforcement agencies to recover stolen funds and bring perpetrators to justice highlight the ongoing battle against cybercrime in the digital age.
