The federal government seizes $7 million in crypto fraud - doj tells the victim: come and get your money

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DOJ asks victims to claim $7 million recovered from global crypto fraud using fake platforms, shell companies and enforcement to emit investor funds.

The federal government has recovered $7 million – now DOJ urges victims to request shares in the recovered funds

The U.S. Department of Justice (DOJ) announced on March 21 that $7 million in revenue from the cryptocurrency investment fraud scheme has been recovered and cleared through the confiscation of civil assets. The announcement is as follows:

The US used the forfeiture of citizen assets to collect and clear the title of $7 million investment fraud revenue. The United States will begin the process of inviting victims who have been stolen and filing a petition to send the funds back to them.

The announcement comes after US District Judge Rossy D. Alston Jr. approved a settlement between the US and foreign banks where the funds were available.

The DOJ complaint outlined how fraudsters relied on social engineering to gain the trust of their victims before presenting opportunities for fraudulent cryptocurrency investments. “These websites were set up to mimic legitimate cryptocurrency investment platforms, but they poured victim funds into perpetrators through more than 75 bank accounts under the name of shell companies,” authorities said. The victims were led to believe that their investment was increasing in value, but in reality, profits were made.

DOJ pointed out:

The site mistakenly stated to the victims that their investments were making substantial profits. However, when the victim attempts to withdraw, the perpetrator forces the victim to send more money using tactics such as claiming that the victim owes taxes on the profits.

After washing the funds through a complex series of domestic and international transactions, the perpetrators eventually transferred money abroad. In June 2023, the US Secret Service seized funds from foreign bank accounts and urged the DOJ to file a civil forfeiture complaint. A settlement was reached after a claim by a foreign bank, and $7 million was confiscated by the United States.