US Authorities Take Legal Action to Reclaim $2.3 Million in Crypto Assets
In a recent development, the United States Attorney’s Office in Massachusetts has filed a civil forfeiture action to reclaim $2.3 million in crypto assets. The goal is to return the funds to 37 victims who were targeted by online scams and fraud. The action seeks to forfeit various cryptocurrencies, including Circle’s USD Coin (USDC), Tether (USDT), Tron (TRX), Solana (SOL), Binance Coin (BNB), Cardano (ADA), and Ethereum (ETH) that were seized from two accounts held at Binance. The estimated current value of these cryptocurrencies is approximately $2.3 million.
Binance Accounts Seized In “Pig Butchering” Crypto Fraud Scheme
An investigation into a fraudulent scheme referred to as “pig butchering” began in the spring of 2023. The scheme targeted a resident of Massachusetts and involved manipulating victims into providing funds by establishing trust through online communication and enticing them to invest in fraudulent crypto schemes. Victims would often make additional payments before realizing they had been scammed. The term “butchering” or “slaughtering” refers to the act of criminals stealing the victim’s assets or funds, causing significant financial and emotional harm. It is worth noting that perpetrators of such schemes are typically located overseas.
According to court documents, a Massachusetts resident fell victim to a romance scam and was deceived into wiring over $400,000 into a cryptocurrency wallet hosted by a legitimate exchange. Some of these funds were then transferred to other wallets and eventually ended up in Binance. In January 2024, the cryptocurrency associated with the fraud scheme was seized from two Binance accounts. Further investigation revealed that these accounts were linked to funds from an additional 36 victims of fraud across the United States.
US Authorities Pursue Justice
The complaint alleges that the seized cryptocurrency represents proceeds from wire fraud, money laundering, and other illicit activities, making it subject to forfeiture. The United States Attorney’s Office for the District of Massachusetts emphasizes that using wire communications as part of a fraudulent scheme or obtaining money or property by false or fraudulent pretenses violates federal law. Similarly, conducting or attempting to conduct financial transactions involving the proceeds of unlawful activity is a federal crime.
The legal action taken by the US Attorney’s Office aims to provide restitution to the victims affected by the “pig butchering” fraud scheme. By recovering the seized cryptocurrency, the goal is to compensate the victims and disrupt the illicit activities of the perpetrators.
Hot Take: US Authorities Crack Down on Crypto Fraud Scheme
In a significant move against online scams and fraud, the United States Attorney’s Office in Massachusetts has taken legal action to reclaim $2.3 million in crypto assets. This action follows an investigation into a fraudulent scheme known as “pig butchering,” targeting individuals through online communication and enticing them to invest in fraudulent crypto schemes.
The scheme caused significant financial and emotional harm to its victims, with criminals stealing their assets or funds. One victim wired over $400,000 into a cryptocurrency wallet hosted by a legitimate exchange, only to discover it had been transferred to other wallets and eventually ended up in Binance.
The US authorities are pursuing justice by filing a civil forfeiture action to reclaim the seized cryptocurrency. This move aims to provide restitution to the 37 victims affected by this scheme and disrupt the illicit activities of the perpetrators.
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