The US government is urging victims of recently busted crypto fraud schemes to move forward in raising lost money.
Officials in a press release from the US Lawyer's Office for the Eastern Region of Virginia say They used civil assets forfeiture to clear the title by recovering it into $7 million in investment fraudulent revenue.
The Department of Justice (DOJ) says the government will invite victims of fraud to file petitions to return those funds.
Citing court documents, the DOJ says it has revealed a fraud scheme in which perpetrators use social engineering to use websites that reflect legitimate platforms to seduce victims to invest in crypto assets.
“Social engineering introduced ideas for cryptocurrency investment through spawed websites after the perpetrators learned about the victim and gained trust. These websites were set up to mimic legitimate cryptocurrency investment platforms, but mimicked the victim's funds to the perpetrators through more than 75 bank accounts under the name of shell companies.
The site mistakenly stated to the victims that their investments were making substantial profits. However, when the victim attempts to withdraw, the perpetrator forces the victim to send more money using tactics such as claiming that he is taxing his profits. ”
The DOJ did not name any individuals or organizations involved in the case.
US authorities began seizing a portion of investment fraud proceeds from bank accounts set up in foreign banks in June 2023. The United States then filed a complaint with the district court to begin a civil forfeiture process for seized funds.
The government ultimately reached a settlement and released $7 million of seized funds, which could have been confiscated by the United States and returned to the victims.
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