The US government will return $7 million in seized funds to victims of fake cryptocurrency investment websites

On March 24th, according to Cointelegraph, the US government is seeking to return $7 million to victims of social engineering fraud who were deceived into depositing money into fake cryptocurrency investment platforms. According to a statement from the United States Attorney's Office for the Eastern District of Virginia, this fraud case involves the fraudster first contacting the victim and gaining their trust, then directing them to a website disguised as a legitimate cryptocurrency investment platform. Once the victim makes a deposit, the funds will be transferred through more than 75 bank accounts, which are nominally owned by shell companies, and then fraudulently transferred abroad, appearing to be domestic remittances, although in reality the funds are transferred to banks outside the United States. When the victim attempts to withdraw money, criminals will use means such as the victim's' need to pay taxes on the assumed income 'to force them to remit again The US Secret Service seized a portion of funds from a foreign bank in 2023 and initiated civil confiscation proceedings by filing a lawsuit with a US district court. However, the bank also filed a claim for these funds, and the US government ultimately reached an agreement to return $7 million of the seized funds to the victims.