The Federal Bureau of Investigation (FBI) have seized more than $6 million in cryptocurrency from international perpetrators involved in fraudulent investment schemes, according to an official announcement.
Matthew M. Graves, U.S. Attorney for the District of Columbia, along with U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee, Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Criminal Division, and FBI Special Agent in Charge Joseph E. Carrico of the Knoxville Division, jointly revealed the operation.
The perpetrators, based in Southeast Asia, targeted individuals in the United States through cryptocurrency confidence investment schemes, fraudulently obtaining millions by exploiting victims’ trust.
The FBI traced the illicit funds on the blockchain, identifying multiple cryptocurrency wallet addresses holding over $6 million in victim assets.
Cryptocurrency confidence investment schemes typically begin with criminals contacting potential victims via text messages, dating apps, or professional investment groups.
After gaining the victims’ trust, perpetrators recommend cryptocurrency investments, often directing them to fake investment platforms that mimic legitimate sites.
Victims are guided to open cryptocurrency accounts and transfer funds, which are then routed to wallets controlled by the fraudsters. Initial returns may be provided to build trust, but ultimately, victims are locked out of their accounts and lose all their investments.
“In these scams, fraudsters trick U.S. citizens into believing they are transferring funds to legitimate investment opportunities when, in fact, they are unwittingly handing their money to the perpetrators,” said U.S. Attorney Graves. “Despite these fraudsters operating from outside the United States, we, along with the FBI, are committed to recovering these funds and holding those responsible accountable.”
FBI Special Agent Carrico emphasized the challenges posed by digital currency fraud. “While investment scams are not new, using digital currencies complicates fund recovery efforts. Our best defense is public education—if an investment sounds too good to be true, it likely is.”
Data from the FBI’s Internet Crime Complaint Center (IC3) indicated that in 2022 alone, such schemes targeted tens of thousands of U.S. victims, siphoning over $2 billion in private assets overseas. Complaints involving cryptocurrency losses surged by 45% from 2022 to 2023, increasing from $3.8 billion to over $5.6 billion.
The FBI Knoxville Division leads the investigation, supported by the Justice Department’s Office of International Affairs and the FBI’s Virtual Asset Unit. The Department of Justice acknowledged Tether for facilitating the asset transfer.
The case is prosecuted by Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr. of the District of Columbia, Assistant U.S. Attorney Joseph DeGaetano of the Eastern District of Tennessee, and Trial Attorney Stefanie Schwartz from the National Cryptocurrency Enforcement Team.
