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

US authorities target $2.3M in crypto linked to online scams, aiming to return funds to 37 victims nationwide in a major forfeiture action.
US Seeks Forfeiture of $2.3M in Crypto Tied to Online Scams

Highlights

  • US targets $2.3M in crypto from 37 scam victims.
  • "Pig butchering" scam costs MA residents $400K.
  • DOJ & FBI recapture $1.4M in Tether from fraud.

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.

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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.

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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.

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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.

Read Also: Solana’s dogwifhat (WIF) is Going to Las Vegas In Grand Style

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Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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