U.S. Attorney’s Office Targets Cryptocurrency in Fraud Case
In a noteworthy legal move, the U.S. Attorney’s Office in the District of Columbia has initiated a civil forfeiture action in federal court targeting over $225.3 million in cryptocurrency linked to fraudulent activities. This is part of a broader investigation where the U.S. Secret Service and the FBI have employed advanced blockchain analytics to trace these digital assets back to elaborate “pig butchering” scams and other investment fraud schemes characterized by money laundering and theft.
Details of the Indictment
The official indictment details how the cryptocurrency was funneled through a complicated on-chain money laundering system executing hundreds of thousands of transactions aimed at disguising the origins of the fraudulently obtained funds. Scammers utilized a multitude of cryptocurrency addresses to navigate and disseminate the illicit funds across various wallets, creating a convoluted web of transactions that made detection challenging.
Victim Impact
Regrettably, the investigation revealed that there are numerous victims across the United States who have been lured by deceptive investment platforms, with estimates suggesting that the global count of victims surpasses 400. In numerous instances, individual losses soared to millions.
Record Recovery Amount
Remarkably, the recovery amount is being heralded by the Secret Service’s San Francisco division as the largest in the agency’s 160-year history. Leading the case is the Computer Crime and Intellectual Property Section of the Department of Justice, which has received ongoing support from Tether, a major stablecoin issuer, during the investigative process.
