US Government asks victims of crypto-fraud scheme that was recently uncovered to claim their money.
According to a release by the U.S. Attorney’s Office of the Eastern District of Virginia officials, they recovered and cleared title of $7 million of proceeds from investment fraud using civil asset forfeiture.
According to the Justice Department, the government is now inviting victims to file petitions for the return of their funds.
The DOJ, citing court documents as evidence, says that it has uncovered a scam scheme where perpetrators use social engineering techniques to trick victims into buying crypto assets on websites which mimic legitimate platforms.
The social engineering was carried out by the perpetrators, who got to know their victims before they introduced them to investment opportunities in cryptocurrency through the fake websites. The websites mimicked legitimate cryptocurrency platforms but diverted victim money to perpetrators via over 75 shell company bank accounts.
Sites falsely claimed that victims were earning substantial returns on their investment. When victims attempted to withdraw money, perpetrators used tactics to force them to pay even more. For example, they would claim that the victims were owing taxes for their claimed profits .”
The DOJ has not named any individuals or organizations involved in this case.
In June 2023, US authorities began to seize some of the proceeds of an investment fraud from a bank set up by a foreign institution. In June 2023, the US filed a civil forfeiture complaint at a District Court against the funds seized.
After a long negotiation, the government reached an agreement that allowed $7 million to be returned to victims and forfeited back to America.
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