FBI races to get $8.2 million in return to the hands of victims

Federal authorities will move to return $8.2 million in cryptocurrency seized by victims of a wide range of crypto fraud schemes that have deceived investors through fraudulent messaging and fake platforms.

The FBI seized $8.2 million in code – now they are taking action to refund the victims

Federal authorities are working to exceed $8.2 million in cryptocurrencies seized by victims of investment fraud schemes targeting individuals from multiple states. The U.S. Attorney’s Office for the Northern District of Ohio has filed a civil complaint seeking the confiscation of 8,207,578 tethers (USDT). The U.S. Department of Justice (DOJ) explained in a February 28th release that it was in court documents.

The FBI has identified 33 victims of investment fraud schemes nationwide. In total, the victim lost around $4.9 million.

“Five more accounts are known to be affected, and the FBI is trying to identify their respective owners. The victims associated with the additional accounts lost about $1,071,086,” DOJ added.

Investigators convinced them to invest in fraudulent cryptocurrency platforms after determining that the fraudster had first won the trust of the victims through fraudulent text messages. One of the victims, a woman from Lake County, Ohio, saved $663,352 in life after being manipulated by a con manoe who pretended to be a friend. She was led to open a cryptocurrency account on crypto.com and was convinced to transfer her funds to what she considers to be a legitimate investment platform. When she tried to withdraw the money, she met the demands and threats of employed taxes on her family.

After realising the fraud, she reported the fraud to the FBI’s Internet Crime Complaint Center, prompting an investigation by the FBI’s Cleveland department. In blockchain analysis, some of the stolen funds were tracked by three cryptocurrency addresses, leading federal authorities to seize the USDT token in November 2024. The funds were transferred to law enforcement controlled wallets with support from Tether Limited.

Through a forfeiture complaint filed on February 27, the US government is seeking legal authority to redistribute seized cryptocurrencies to victims. DOJ pointed out:

If this forfeiture is successful, the US will attempt to return the stolen funds to the victims.

The complaint argues that additional funds held in fraudulent accounts are revenue from financial crimes and should be forfeited. While claims for the complaint still have to be proven in court, the Department of Justice stressed that the ultimate goal of the case is to return stolen assets to those who have been fraudulent.