Originally published on: September 28, 2024
In a recent crackdown, authorities have confiscated more than $6 million in cryptocurrency linked to scammers operating out of Southeast Asia who were preying on US citizens through bogus investment schemes.
According to the US Attorney’s Office for the District of Columbia, the fraud involved misleading investors into believing they were putting their money into legitimate cryptocurrency ventures, resulting in losses totaling millions of dollars.
By tracking the stolen funds on the blockchain, the FBI was able to identify multiple crypto wallet addresses associated with the scam, holding over $6 million in digital assets stolen from victims.
Tether, a prominent cryptocurrency firm, played a vital role in assisting authorities by freezing the scammers’ wallets, facilitating the swift recovery of the stolen funds.
Matthew Graves, the US Attorney for the District of Columbia, highlighted the challenges in recovering funds from these types of scams, as fraudsters and their accounts are typically located overseas.
The fraudsters use various methods to approach and deceive victims, including targeted text messages, dating apps, and investment communities. Once trust is established, scammers lure victims into fake crypto investments on fraudulent websites that promise significant returns.
Although victims may see temporary gains and withdrawals, the reality is that all deposits are redirected to wallet addresses controlled by the scammers, who exploit the trust of unsuspecting investors.
Chad Yarbrough, Assistant Director of the FBI’s Criminal Investigative Division, emphasized the devastating impact of crypto investment scams like this one, which affect thousands of Americans daily. He warned against falling for schemes promising quick riches, urging caution and due diligence.
The FBI’s 2023 cryptocurrency fraud report revealed that investment scams accounted for nearly 71% of reported crypto fraud, resulting in over $3.9 billion in losses. The majority of these complaints and losses were reported from the US, underscoring the prevalence of such scams in the country.
In light of the growing threat posed by crypto-related fraud, authorities are working diligently to combat these illicit activities and protect investors from falling victim to fraudulent schemes.
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