US Seeks Forfeiture of $2.3M in Crypto Tied to Online Scams

The US Attorney’s Office in Massachusetts has initiated a civil forfeiture action aimed at recouping $2.3 million in cryptocurrency. This amount is associated with several internet frauds, with 37 victims all over the country. The measure, in a consolidated approach by federal agencies, is aimed at dealing with and reducing the impacts caused by internet fraud scams, especially the ones that involve digital currencies.

Forfeiture Action Targets Crypto Scams

The forfeiture seeks to recover a mix of digital currencies, including USD Coin (USDC), Tether (USDT), Tron (TRX), Solana (SOL), Binance Coin (BNB), Cardano (ADA), and Ether (ETH), held in two Binance accounts. These assets were identified and frozen in January 2024 after an extended investigation into a “pig butchering” fraud that resulted in the loss of $400,000 to a Massachusetts resident.

The term “pig butchering” defines a corrupt practice when fraudsters undergo a stage of building trust with their victims before persuading them to invest in nonexistent opportunities that result in considerable financial losses.

Collaboration and Recovery Efforts

The action of the US Department of Justice was facilitated by a larger investigation into fraudulent schemes that prey on people through intricate online systems. These endeavors indicate the growing partnership of cryptocurrency platforms such as Binance and law enforcers in tracking and retrieving assets involved in criminal activities. The process not only consists of tracing the illegally gained funds but also finding the legal ways to send them back to their legitimate owners, illustrating how difficult and complex it is to control the digital financial environment.

Concurrently, Tether was instrumental in helping the Department of Justice and the Federal Bureau of Investigation with the recovery and return of about $1.4 million in Tether (USDT) tokens. These were attached to a tech support scam most prevalent among old people, therefore showing the wider range of online frauds outside the cryptocurrency sector.

Legal Framework and Victim Support

The process of filing the civil forfeiture action is a significant stage in the legal procedure that makes the possibility of the return of the seized assets to the victims. It creates an opportunity for third parties to stake claims in properties that have been forfeited, as an open and fair system to redress the consequences of such offenses. This lawsuit is based on the breach of federal laws related to wire fraud and money laundering, demonstrating the negative implications of using digital platforms and popular cryptocurrencies in fraudulent activities.

The US Attorney’s Office is urging the public, especially people who may suspect that they are victims of cybercrime, such as crypto scams and romance scams, to come forward and report their experiences. This initiative is a result of a wider approach employed to fight online fraud, guaranteeing that victims are given the necessary assistance and resources to get back their losses.

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.