The US government continues to return cryptocurrency stolen through hacks
US authorities are preparing to return $7 million to victims of a sophisticated crypto scam that tricked investors into sending money to fraudulent online platforms. The scheme, which involved social engineering tactics, led victims to believe they were investing in legitimate cryptocurrency ventures.
The United States has recovered and cleared title to $7 million of investment fraud proceeds using civil asset forfeiture; victims may submit petitions to have the funds remitted back to them.#USSS #EDVA #justice https://t.co/h4DlRzQgZx
— U.S. Attorney EDVA (@EDVAnews) March 21, 2025
Scammers first gained the trust of their targets before directing them to fake investment websites that closely resembled real crypto trading platforms. Once victims deposited their funds, the money was funneled through a complex network of over 75 bank accounts tied to shell companies. These transactions were falsely labeled as domestic transfers, but the funds were actually sent to a foreign bank.
Victims were led to believe their investments were generating significant returns. However, when they attempted to withdraw their earnings, the scammers pressured them into making additional payments. In some cases, they claimed that taxes or fees had to be settled before the funds could be accessed. This deceptive approach kept many victims trapped in the scheme, sending even more money in hopes of recovering their supposed profits.
The US Secret Service managed to seize a portion of the stolen money from a foreign bank in 2023, leading to a civil forfeiture process. After negotiations, authorities reached a settlement to recover $7 million, which will now be distributed to victims who come forward. The Secret Service is encouraging those affected to file claims in order to reclaim their lost funds.
Crypto scams continue to evolve, with cybercriminals finding new ways to exploit investors. Recent reports highlight similar frauds, including phishing messages that mimic major crypto exchanges and malware disguised as trading software. With digital assets remaining a prime target for scammers, authorities are working to curb fraudulent activity and recover stolen funds for victims.
