FBI Seizes $6M in Crypto From Southeast Asian Scammers

U.S. authorities have seized over $6 million worth of cryptocurrency linked to a fraudulent investment scheme organized by Southeast Asian criminals. Targeting U.S. individuals, the criminals manipulated victims through fake cryptocurrency platforms. The Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) recovered the funds using blockchain tracing.

DOJ Seizes $6 Million in Cryptocurrency Fraud Scheme

The U.S. Attorney’s Office in Washington announced on Thursday that U.S. authorities have “seized over $6 million worth of cryptocurrency from perpetrators overseas” involved in a fraudulent investment scheme. The fraud, which targeted U.S. individuals, was organized by criminals based in Southeast Asia. The Department of Justice (DOJ) worked with the Federal Bureau of Investigation (FBI) to recover the stolen funds using blockchain tracing.

According to the DOJ:

The perpetrators in Southeast Asia targeted one or more individuals in the United States and fraudulently obtained millions of dollars’ worth of cryptocurrency through a cryptocurrency confidence investment scheme.

The FBI traced the stolen funds and “was able to trace victim funds on the blockchain and located multiple cryptocurrency wallet addresses which still held victim funds totaling more than $6 million.” These schemes often involve building trust with victims before directing them to invest in fake cryptocurrency platforms. The platforms display false returns, encouraging further investments before victims are eventually locked out and lose access to their funds.

U.S. Attorney Graves warned:

In these scams, fraudsters trick U.S. citizens into believing they are transferring funds to cryptocurrency investment opportunities when, in fact, they are just unwittingly turning their money over to the fraudsters.

The DOJ said these scams led to over $2 billion in losses in 2022 alone, and the trend is worsening. The FBI is continuing to investigate, with assistance from international partners and Tether in recovering stolen funds. Several U.S. attorneys, including those from the National Cryptocurrency Enforcement Team, are prosecuting the case.