The United States authorities have announced that they will soon return $7 million to victims of a cryptocurrency investment scam. Scammers impersonated trusted contacts and persuaded victims to invest using fake trading systems that resembled genuine ones at popular exchanges.
Once victims invested, money was funneled through over 75 bank accounts linked to shell companies. Even though they were domestic transactions, they sent the money to foreign banks.
The fraudulent websites displayed profits to create a false sense of financial gain. However, when the victims attempted to withdraw their cash, the scammers tricked them into sending additional funds under the guise of taxation or another reason.
In 2023, the Secret Service of the United States managed to recover a portion of stolen money from a bank. The government is carrying out civil forfeiture, which commenced a legal dispute over control of the assets. Eventually, they reached a deal that allowed the return of $7 million to the defrauded investors.
Authorities have urged victims to step forward to file claims and recover their losses. This case illustrates the growing threat of crypto fraud and the need to be careful when investing in them online.
