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U.S. Department of Justice Moves to Seize $2.3 Million in Cryptocurrency
The U.S. Department of Justice has taken legal action to seize $2.3 million in cryptocurrency linked to an elaborate “pig butchering” scam.
Details of the Scheme
According to the U.S. Attorney’s Office for the District of Massachusetts, the civil forfeiture action aims to recover funds from an alleged romance scam that targeted a Massachusetts resident.
- The investigation, initiated in spring 2023, revealed that the victim wired over $400,000 into a crypto wallet.
- 37 individuals across the U.S. have been affected by similar fraudulent activities.
Seized Cryptocurrency
The government is seeking to forfeit various cryptocurrencies, including USD Coin (USDC), Tether (USDT), Tron (TRX), Solana (SOL), Binance Coin (BNB), Cardano (ADA), and Ether (ETH), with a total value of approximately $2.3 million.
Money Laundering and Forfeiture
The seized crypto is believed to have originated from wire fraud and money laundering activities, making it subject to forfeiture.
Civil forfeiture procedures allow third parties with claims to the assets to come forward for adjudication before redistribution to victims.
Rise in Crypto Investment Scams
The FBI reported a 53% increase in cryptocurrency-related investment losses from 2022 to 2023, totaling $3.94 billion, highlighting a significant surge in fraudulent activities.
Cryptocurrency losses accounted for 86% of total investment fraud losses in 2023, amounting to $4.57 billion nationwide.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
