Author: CryptoSlate

Translation: Shenchao TechFlow

Shenchao Introduction: The Department of Justice announced the recovery of 26.4 million dollars from five cases, with a total of over 800 million dollars in frozen funds, but "recovered" and "received by victims" are two different matters—courts have not yet ruled on forfeiture, the suspect's identity remains unclear, and there is no timeline for compensation; how much of this money will ultimately reach the victims remains unknown.

On July 21, U.S. prosecutors filed five civil forfeiture lawsuits in connection with five independent international fraud investigations, seeking the forfeiture of approximately 26.4 million dollars in cryptocurrency.

Investigators can freeze the alleged criminal proceeds without knowing the identities of the behind-the-scenes manipulators, and then seek forfeiture while continuing to investigate the suspects; the final forfeiture and victim compensation will be decided afterward.

The U.S. Attorney's Office for the District of Columbia stated that one investigation tracked over 270 suspected victim transactions involving fraudulent investment platforms. Another investigation involved over 200 pig-butchering victims and hundreds of intermediary addresses used for mixing funds.

The Department of Justice stated that in all five cases, the money launderers were primarily located in Southeast Asia, with relevant IP addresses in China, Malaysia, and Cambodia.

From Freezing to Compensation

The purpose of freezing is to prevent the transfer of identified cryptocurrency. Civil forfeiture lawsuits initiate the next legal procedure, requesting the court to transfer property ownership to the government.

The Department of Justice stated that civil judicial forfeiture targets property and does not require a criminal conviction. However, prosecutors must prove by a preponderance of the evidence its connection to criminal activities. Therefore, filing a lawsuit does not imply completion of forfeiture or establishment of anyone’s criminal wrongdoing.

The Department of Justice described these five forfeitures as part of the more than 800 million dollars recovered by the Fraud Center Strike Force.

The Strike Force project page (updated June 18) reported different data: 832.8 million dollars in cryptocurrency frozen. These numbers use different terms and dates, so they are not direct comparisons or victim compensation statistics. They show that the assets reported as recovered or frozen by the Department of Justice have reached hundreds of millions of dollars, but the final disposition remains unresolved.

Recovering funds does not automatically return the money to the victims. Eligible victims may later obtain forfeited assets through the Department of Justice's waiver or restoration procedures, which can also distribute funds to the courts for compensation.

The announcement on July 21 did not provide distribution amounts, lists of eligible claimants, or a timeline for these five cases. What remains unresolved is whether the court will approve the forfeiture, the identities finalized by investigators, and how much of the involved cryptocurrency will ultimately reach the victims.