US authorities have taken control of over $225 million in digital assets connected to online scams that tricked people into fake crypto investments.
The Department of Justice stated in a June 18 statement that the Secret Service had seized the funds and was involved in a civil forfeiture case. In this type of case, the government targeted the assets themselves, not specific individuals.
According to the filing, more than 400 people were affected by these scams. They had been convinced to invest in legitimate crypto projects, but later found out their money had disappeared.
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Acting US Attorney for the District of Columbia Jeanine Pirro said the government intends to return the recovered funds to those who lost money. The exact details of the scams were not made public, but officials said they followed a known pattern known as “pig butchering”.
In this type of scam, fraudsters gradually gain a victim’s trust, convincing them to send increasing amounts of money over time before cutting off contact.
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The announcement came on the same day as a separate case in New York, where authorities reported stopping a crypto-related scam that targeted Russian-speaking users through fake online ads. How did the case unfold? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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