Federal Authorities Seize Deltec Bank Accounts Tied to Crypto Scams
Federal authorities in the U.S. have executed seizure warrants for accounts belonging to Deltec Bank, a Bahamian bank connected to digital asset firms. The U.S. Secret Service seized funds from U.S. bank accounts controlled by Deltec, citing wire fraud, bank fraud, and money laundering as probable cause. The investigation focuses on organized, international criminal money laundering syndicates operating cryptocurrency investment and wire fraud scams. The Secret Service seized a maximum of $58.5 million from custodial accounts opened by Deltec on behalf of corporate clients at Mitsubushi Bank UFJ Trust in New York.
Key Points:
– U.S. federal authorities executed seizure warrants for Deltec Bank accounts.
– The investigation involves organized, international money laundering syndicates.
– The seized funds were held in custodial accounts opened by Deltec.
– The accounts belonged to shell companies at the center of an international fraud scheme.
– Mitsubushi Bank flagged the accounts after not receiving information on the companies from Deltec.
The Secret Service alleges that the shell companies whose funds were held by Deltec were part of an international fraud scheme. Victims were tricked into depositing digital assets or cash into accounts, believing they were making investments. The spoofed websites displayed false account balances to deceive victims into making more deposits, with no option for withdrawals. Mitsubushi Bank flagged the accounts after failing to obtain information on the shell companies from Deltec. The investigation identified at least 74 shell companies involved in wire fraud and money transfers to avoid scrutiny.
In conclusion, federal authorities have executed seizure warrants for Deltec Bank accounts linked to an international fraud scheme involving cryptocurrency investment and wire fraud. The investigation uncovered shell companies that deceived victims into depositing funds, with no option for withdrawals. Mitsubushi Bank flagged the accounts after not receiving information on the companies from Deltec.
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