In a major crackdown on cryptocurrency fraud, the Department of Justice (DOJ) seized approximately $112 million related to various investment scams
In a significant move against fraudulent activity in the cryptocurrency industry, the Department of Justice (DOJ) confiscated approximately $112 million in digital currencies linked to numerous investment scams.
Judges in various states have authorized seizure warrants for six digital currency accounts. These accounts were allegedly used to launder funds obtained from a variety of crypto-related trust scams.
In these schemes, scammers build long-lasting relationships with victims, tricking them into investing in fake cryptocurrency trading platforms.
In 2022, the majority of scams reported to the FBI involved investment fraud with cryptocurrencies, including pork butcher scams, resulting in the largest losses, amounting to approximately $3.3 billion. .
The victims were approached through social media, online communication platforms, dating sites and erratically dialed phone calls and text messages.
As part of its ongoing fight against international criminal organizations that exploit trust scams and technological know-how to defraud Americans, the DOJ plans to return confiscated digital assets to victims.
In addition to dismantling these operations, the DOJ is committed to raising public awareness and encouraging caution in online dealings and suspicious investment recommendations, especially those involving cryptocurrencies.