Significant Action Against Cryptocurrency Scams
In a significant move aimed at combating cryptocurrency-related scams, Matthew Galeotti, the leader of the Justice Department’s Criminal Division, announced a civil forfeiture complaint targeting over $225 million in cryptocurrency. This action arises amidst a troubling surge in cryptocurrency fraud, with the FBI estimating that such schemes caused approximately $9.3 billion in reported losses in 2024 alone, with investment frauds alone accounting for $5.8 billion of that sum.
Details of the Allegations
The allegations presented in the complaint revolve around a criminal operation that allegedly deceived more than 400 victims, persuading them to invest in fake cryptocurrency opportunities. The fraudsters employed complex tactics to obscure their illicit activities, conducting thousands of transactions through a wide array of wallets to clean their stolen assets.
Ongoing Efforts and Recent Actions
This recent action exemplifies the Department’s ongoing efforts to hold individuals accountable for defrauding unsuspecting investors. Just a week prior, officials reported successful guilty pleas from five individuals accused of laundering over $36 million through similar fraudulent schemes originating in Cambodia, facing potential sentences of five to twenty years in prison. Additionally, a federal court in Washington D.C. authorized the seizure of $2.5 million linked to these scams, as well as another $868,247 seized from perpetrators.
Call for Public Vigilance
Galeotti emphasized the urgent need for public vigilance against such frauds, which have dire financial and emotional repercussions for victims, especially among individuals aged 60 and above who collectively suffered losses exceeding $2.8 billion last year. He urged potential investors to educate themselves and recognize warning signs of scams, particularly scrutinizing unsolicited investment offers and being cautious about sharing personal information.
Commitment to Justice
Notably, Galeotti reiterated the Department’s unwavering commitment to safeguarding the public from transnational criminal enterprises dedicated to exploiting citizens for profit. Investigators and prosecutors remain dedicated to identifying and prosecuting those who perpetuate these schemes, ensuring that justice is served and that these crimes are met with serious consequences.
