FBI Seizes $6 Million From Crypto Scammers
02 Oct, 2024 ● Crypto News
Authorities have confiscated over $6 million in cryptocurrency from wallets linked to scammers based in Southeast Asia, who targeted U.S. citizens through investment fraud schemes.
On September 26, the U.S. Attorney’s Office for the District of Columbia revealed that victims were deceived into believing they were investing in legitimate cryptocurrency ventures, resulting in the loss of millions of dollars.
The FBI tracked the stolen funds on the blockchain and identified several cryptocurrency wallets connected to the scam, which were still holding over $6 million in digital assets.
Tether played a role in helping authorities by freezing the wallets associated with the scammers, facilitating the "swift recovery" of the stolen funds.
The U.S. Attorney for the District of Columbia, Matthew Graves, noted that these types of scams are often difficult to resolve because the fraudsters and their accounts are typically based overseas.
He explained, "In these scams, fraudsters trick U.S. citizens into believing they are transferring funds to cryptocurrency investment opportunities when, in fact, they are just unwittingly turning their money over to the fraudsters."
Victims of these schemes are approached through various channels, such as misdirected text messages, dating apps, or investment groups.
Once scammers earn their trust, they suggest investing in cryptocurrency but direct victims to fraudulent platforms that mimic legitimate investment websites.
Some of these fake platforms may initially appear to offer high returns and allow small withdrawals, but in reality, all deposits are funneled into a wallet controlled by the scammers.
FBI Criminal Investigative Division Assistant Director Chad Yarbrough emphasized the severe impact of these scams, stating they are "devastating" and affect thousands of Americans every day.
He highlighted that victims have lost millions, with some taking out second and third mortgages in hopes of finding the next big investment opportunity.
According to the FBI’s 2023 annual cryptocurrency fraud report, nearly 71% of the crypto fraud reported to its Internet Crime Complaint Center (IC3) involved investment scams.
These frauds were the most frequently reported, with over $3.9 billion stolen.
While the FBI received complaints from over 200 countries, the majority of the reports and financial losses originated in the U.S.
Sources:
https://cointelegraph.com/news/fbi-seizes-6-million-from-crypto-scammers-targeting-u-s-citizens
