Federal prosecutors moved to return seized cryptocurrencies after a court ordered them forfeited in connection with a scam targeting senior citizens, paving the way for authorities to track down Bitcoin and USDT used in a multi-state fraud scheme.
Forfeiture Order Completes Recovery of Bitcoin and Tether from Elder Fraud Scheme
A federal court case advances efforts to recover funds lost in the fraud scheme. The U.S. Attorney’s Office for the Middle District of Louisiana announced on December 18 that it will confiscate virtual currency seized in connection with a senior citizen scam, allowing for the return of assets to victims.
According to the announcement, U.S. District Judge Brian A. Jackson on December 15 signed a final civil forfeiture order targeting virtual currencies related to wire fraud and money laundering. The law firm elaborated as follows:
A final forfeiture order has been signed in the civil forfeiture case, officially confiscating 1.96356404 BTC and 60,139.5734 USDT in digital currencies involved in wire fraud and money laundering crimes.
“The Bitcoin and USDT, also known as Tether, were seized from a wallet address in the name of an Indian national that was stored at a digital currency exchange in Seychelles, Africa. The confiscated Bitcoin and Tether are collectively worth more than $200,000,” the statement added.
Officials indicated that these assets are now eligible for the U.S. Department of Justice (DOJ) to begin restitution proceedings against multiple victims. Investigators determined that at least four seniors were manipulated by a cryptocurrency emergency scam that relied on impersonation, urgency, and fabricated threats to coerce them into making quick financial decisions.
read more: Department of Justice seeks $5 million in Bitcoin in connection with SIM swapping and casino laundering scheme
Further details describe how the four victims, all over the age of 70, followed instructions to withdraw large amounts of cash from their personal bank accounts, deposit the money into a Bitcoin ATM, and transfer the money to wallet addresses controlled by the perpetrators. Two of the victims lived in Louisiana, and the others lived in Texas and Minnesota. In one incident, a victim had her bank account hacked, falsely linked it to incriminating material, and was threatened with arrest unless she deposited $31,000 into a Bitcoin ATM. Another victim received a fraud alert on her laptop and was instructed to transfer $30,000 in two ATM transactions of the same size.
The U.S. Secret Service Cyber Fraud Task Force worked with multiple parish and county sheriff’s offices across four states to track digital transactions and identify wallet flows. Prosecutors emphasized that while crypto emergency scams often exploit fear and confusion, especially among older adults, federal and local agencies continue to strengthen training, investigative tools, and interagency coordination through the Department of Justice’s Elder Justice Initiative.
FAQ ⏰
- How much virtual currency was confiscated in the Louisiana fraud case?
Federal authorities confiscated 1.96356404 BTC and 60,139.5734 USDT worth more than $200,000. - Who are the main victims of crypto emergency scams?
At least four victims over the age of 70 were targeted across Louisiana, Texas, and Minnesota. - How did the scammer obtain the victim’s funds?
Victims were instructed to withdraw cash and deposit it into a Bitcoin ATM linked to the fraudulent wallet. - What happens next with the seized Bitcoin and USDT?
The Department of Justice can now begin proceedings to compensate affected victims.
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