The United States Attorney’s Office filed a civil forfeiture action to recover 7.23918814 BTC (bitcoin), 14,120 USDT (Tether), 105.75351403 ETH (Ethereum) and several other cryptocurrencies, alleged to be proceeds of an online investment fraud scheme.
The cryptocurrency currently has an estimated value of more than $170,579.
In March 2024, an investigation began into a cryptocurrency investment fraud scheme that targeted a Massachusetts resident.
In such fraud schemes, often called “pig-butchering” schemes, scammers obtain funds from victims using manipulative tactics. The scammer establishes a level of trust with a victim in online communications and then entices the victim into investing in a fraudulent cryptocurrency scheme.
Often the victim is enticed to make additional payments before realising they are a victim of fraud. The victim’s funds are stolen by the criminal, or criminals, ultimately causing the victim financial and emotional harm.
Perpetrators behind these cryptocurrency investment schemes are often located overseas.
As alleged in court documents, a Massachusetts resident joined a Facebook Group called “Financial Independence Forum” that purported to be a “community dedicated to assist individuals achieve financial independence and early retirement through reliable investment.”
After being shown screenshots showing “profit gains” and receiving message claiming expertise in investments and effective trading strategies, the victim followed instructions to create an account and transfer funds to a new trading platform that law enforcement believes was fraudulent.
During the investigation, three additional victims were identified from across the United States who sent funds to the same allegedly fraudulent trading platform. Some victim funds were traced to a cryptocurrency account, which was seized in October 2024.
It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. It is also a violation of federal law to conduct a financial transaction knowing that the transaction is designed to conceal the nature, location, source, ownership, or control of criminal proceeds.
A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.
This is one of several civil forfeiture actions the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency traced to fraud schemes targeting Massachusetts victims.
