DOJ Seizes $112M In Digital Assets Due To Cryptocurrency Investment Scam

Key Points:

• Yesterday, the DOJ seized $112 million worth of digital assets related to crypto investment fraud.
• These virtual currency accounts are said to have been used to launder the proceeds of various crypto trust scams.
• The common criminal operation is to gain the victim’s trust through communication methods such as social networks, dating sites, phone, and text messages and then persuade investors to invest.

The United States Department of Justice (DOJ) has seized $112 million worth of digital assets related to crypto investment fraud that is reinforced by the criminals’ trust with the victim. Judges in Arizona, California and Idaho counties have authorized the seizure of six virtual currency accounts.

According to court documents, these virtual currency accounts are believed to have been used to launder the proceeds of various crypto trust scams. Transnational criminal organizations combine trust scams with technological savvy to trick Americans with their hard-earned money.

In related scams, perpetrators gradually gain victims’ trust through communication methods such as social networks, dating websites, phone numbers, and text messages. Ultimately, the perpetrators convince their target to invest in fake crypto platforms before transferring the stolen funds to their addresses.

“In these schemes, fraudsters cultivate long-term relationships with victims met online, eventually enticing them to make investments in counterfeit cryptocurrency trading platforms. In reality, however, the funds sent by victims for these purported investments were instead funneled to cryptocurrency addresses and accounts controlled by scammers and their co-conspirators.”

Assistant Attorney General Kenneth A. Polite of DOJ said.

Scammers control websites built to look like legitimate trading platforms, apps that victims download to their phones, or malicious smart contracts accessed through the malware cryptocurrency wallet software.

According to the US DOJ, by 2022, investment fraud will result in the highest losses of any scam reported to the FBI’s Internet Crime Complaint Center (IC3), totaling $3. ,31 billion USD. Cryptocurrency-related fraud, including scams, makes up most of these scams, with reported losses growing by 183% between 2021 and last year to $2.57 billion.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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