Feds seize $112,000,000 in crypto from US-based entities allegedly involved in scam
The US Department of Justice (DOJ) announces the seizure of over $112 million worth of crypto linked to cryptocurrency investment fraud.
In a new announcement, the DOJ says it is targeting six crypto accounts with seizure orders authorized by judges in Arizona, California and Idaho.
According to court documents, “virtual currency accounts” were allegedly used to launder the proceeds of various cryptocurrency trust scams.
Scammers cultivated long-term relationships with victims they met online, eventually luring them into making investments in fake cryptocurrency trading platforms, the DOJ says. The funds sent by victims for the alleged investments were then funneled into wallets and accounts controlled by the bad actors and their co-conspirators.
The FBI’s Internet Crimes Complaint Center (IC3) reported that in 2022, investment fraud caused the highest fraud losses reported by the public, totaling $3.31 billion. Crypto fraud represented the majority of these scams, increasing a staggering 183% from 2021 to $2.57 billion in reported losses last year.
The highest number of reports came from victims between the ages of 30 and 49.
Says Assistant Attorney General Kenneth A. Polite, Jr. from the DOJ Criminal Division,
“Transnational criminal organizations combine trust fraud with technological know-how to swindle Americans out of their hard-earned funds.”
Director Eun Young Choi of the Criminal Division’s National Cryptocurrency Enforcement Team stated that the agency will continue to use all tools at its disposal to disrupt and deter cryptocurrency trust schemes through blockchain analysis and targeting the infrastructure used by fraudsters.
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Featured image: Shutterstock/Brazhyk
