US authorities are planning to return $7 million to victims of a fraudulent scheme involving fake crypto investment platforms.
Crypto Investment Scam Scheme
Fraudsters earned victims' trust and directed them to websites posing as legitimate crypto investment platforms. Once victims deposited funds, the money was funneled through over 75 bank accounts under shell company names, then sent abroad.
US Authorities' Actions
The US Secret Service seized some of the stolen funds and initiated a civil forfeiture process. Authorities reached a settlement to return $7 million to victims. Victims are urged to contact the Secret Service to recover funds. The US Attorney's Office for the Eastern District of Virginia stated that the fraudulent sites falsely claimed victims' investments were gaining.
In Context of Other Scams
Blockchain analytics firm Chainalysis noted that crypto fraud is becoming more professionalized. Australian federal police alerted 130 people about scam messages posing as legitimate platforms. Reports have surfaced of scam attempts using names of platforms like Coinbase and Gemini to trick users.
Crypto-related scams are a significant issue, highlighting the need for user vigilance and security measures.
