DOJ recovers $7 million from crypto investment scammers
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The United States Department of Justice (DOJ) has recovered $7 million from a global investment scam. According to the authorities, the fraud proceeds were recovered using civil asset forfeiture, with the DOJ announcing plans to return the funds to their rightful owners. According to documents produced in court, the criminals used social engineering schemes to convince their victims to invest in digital assets using fake investment websites. These websites were spoofed, in the sense that they mimicked the original websites of big crypto exchanges and entities. Their modus operandi was to first lure their victims, convince them after talking for a long to gain their trust, and introduce them to the fake website they run. According to authorities, the perpetrators funneled the funds through over 75 bank accounts, using the names of several shell companies. The filing showed that after the victims make their investments, the site falsely represents that their investments are doing well and accruing gains. DOJ recovers and seizes $7 million from investment scammers According to the filing, the victims were not allowed to make withdrawals or take profits from the investments. Anytime they attempt it, the perpetrators will convince them to make more deposits, citing several reasons, with taxes on their purported profits the most used excuse. The criminals laundered most of the funds from their operations, often taking the money outside the United States. After the perpetrators receive the victim’s funds, they move it to the shell company account before transferring it across several banks inside the United States. After the series of internal transfers, the funds are then sent abroad to specific bank accounts that they control. According to the authorities, the group describes the wiring instructions associated with the transfer as domestic wires, while in reality, the funds are being moved outside the…
Filed under: News - @ March 23, 2025 8:13 am