- The scammers carried out their activities from Southeast Asia
- The scammers targeted US citizens and residents
- The FBI described the impacts of the schemes as “devastating”
The United States Federal Bureau of Investigation (FBI) has confiscated crypto assets worth over $6 million from specialist cryptocurrency scammers who targeted US residents.
The scammers defrauded US residents and citizens from their base in Southeast Asia.
According to the US Attorney's Office for the District of Columbia, there was a rising number of fraud cases in the nation, and one or more people lost millions of dollars after being duped into investing in what seemed to be reputable schemes.
In a recent statement, the Office said the FBI was able to trace victim funds on the blockchain and locate multiple cryptocurrency wallet addresses that still held victim funds totalling more than $6 million.
“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 statement read.
“The FBI 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.
Cryptocurrency confidence investment schemes begin with criminals contacting potential victims through seemingly misdirected text messages, dating applications, or professional meetups or investment groups. Next, using various means of manipulation, the criminal gains the victim’s affection and trust,” it further stated.
The FBI warned that the fraudulent platforms appear to offer profitable returns, which would entice investors to make more deposits, but in reality, all deposited money is sent to a cryptocurrency wallet address under the total control of the scammers. To foster trust and assist in persuading victims of the platform's legitimacy, the perpetrators frequently permit victims to withdraw a portion of their "profits" early in the scam. As the scheme continues, victims are unable to withdraw their funds and are provided various excuses as to why. Ultimately, victims are locked out of their accounts and lose all their funds, the FBI explained.
“These types of schemes are devastating, and they’re impacting thousands of Americans every day,” FBI Criminal Investigative Division Assistant Director Chad Yarbrough explained.
“The FBI has seen victims lose millions of dollars, take second and third mortgages on their homes, all in the hopes of finding the next big investment opportunity. The seizure of millions of dollars is proof the FBI will stop at nothing to find these fraudsters who insist on taking advantage of the American public. It doesn’t matter where they are, we will leverage all of our resources and work with our partners domestically and internationally to stop them from stealing people’s hard-earned money.”
US state blocks Nigerian’s crypto scam, fines him $50,000
Meanwhile, TheRadar earlier reported that The United States state of Kansas has blocked an attempt by a Nigerian cryptocurrency scammer, Bimbo Toyin Akinyemi, to defraud one of its residents of their cryptocurrency assets.
According to the state’s statement, “State of Kansas, U.S., Thwarts Attempt by Nigerian Crypto Scammer to Defraud Resident, Attracting Over $50,000 in Civil Penalties,” Akinyemi promised the unsuspecting victim a substantial return on cryptocurrency investment.
