The US government is returning $7 million to victims of a cryptocurrency fraud scheme. This money was recovered through a civil asset forfeiture process.
How the Fraud Worked
Authorities say the criminals used a sophisticated social engineering tactic. They befriended their victims, building trust before introducing them to fake cryptocurrency investment websites. These sites mimicked legitimate platforms, but secretly funneled the victims’ money into over 75 shell company bank accounts. Victims were tricked into believing their investments were growing, but when they tried to withdraw their funds, they were pressured into sending even more money under false pretenses, such as bogus tax claims.
Recovering Your Money
The Department of Justice (DOJ) didn’t name any suspects, but they did successfully seize the fraudulent funds from a foreign bank account in June 2023. After a court settlement, $7 million is now available for distribution to the victims. The DOJ will be contacting victims and providing instructions on how to file a claim to recover their losses.
Important Note
This information is for news purposes only and is not financial advice. Anyone who believes they were a victim of this fraud should seek legal counsel before taking any action.
