The United States Department of Justice (DOJ) has successfully recovered $7 million linked to a global cryptocurrency investment scam.
Authorities confirmed that the funds were seized through civil asset forfeiture, and steps are being taken to return them to the rightful victims.
Fraudulent schemes and tactics
Court documents reveal that the scammers used social engineering techniques to deceive individuals into investing in fraudulent digital asset platforms. The perpetrators created fake websites that closely resembled legitimate cryptocurrency exchanges, making it difficult for investors to recognize the scam.
The criminals built trust with their victims before introducing them to these fake platforms. Once an individual invested money, the scammers manipulated website data to show false profits. Victims were misled into believing their investments were growing, only to find that withdrawals were impossible. Each time an investor attempted to withdraw funds, they were pressured to deposit more money under various pretenses, such as paying taxes on their so-called earnings.
Money laundering and international transfers
Investigations revealed that the scammers used various shell companies to funnel stolen funds through over 75 bank accounts. The money was first deposited into domestic accounts before being transferred multiple times within the U.S. to avoid detection. Eventually, the funds were sent to overseas accounts controlled by the fraudsters.
According to officials, the perpetrators disguised these transactions as domestic wire transfers, while in reality, the money was being moved outside the country. This complex laundering method made it challenging to trace and recover the funds.
Forfeiture actions and victim compensation
The DOJ announced that victims affected by the scheme would soon be invited to submit petitions to claim their recovered funds. Authorities are working on ensuring that the rightful owners receive compensation for their losses.
Documents show that the U.S. Secret Service played a key role in the recovery. In June 2023, agents seized some fraudulent proceeds from a bank account linked to a foreign financial institution. The investigation focused on international money laundering networks involved in cryptocurrency investment and wire fraud.
Officials confirmed seizure warrants were executed on June 12 and June 23, targeting funds held in U.S. accounts. The Secret Service was granted permission to confiscate up to $58 million from a custodial account maintained by Mitsubishi UFJ Trust in New York on behalf of Deltec’s corporate clients. The exact amount ultimately seized remains undisclosed.
Following the seizure, the U.S. government initiated civil forfeiture proceedings. After legal negotiations, authorities reached a settlement in which $7 million was forfeited, allowing victims to recover their losses.