U.S. authorities have seized over $6 million in cryptocurrency linked to a Southeast Asian criminal group running a fraudulent investment scheme. The criminals targeted U.S. citizens, luring victims into investing in fake cryptocurrency platforms. This successful recovery was a result of collaboration between the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI), who used blockchain tracing to track and reclaim the stolen funds.

Confidence Scams Manipulate Victims

According to the DOJ, these fraudsters gained the trust of their victims by promising profitable returns through fake cryptocurrency platforms. Once victims invested, the platforms displayed false profits to encourage further investments. Ultimately, victims were locked out and lost access to their funds.

U.S. Attorney Matthew Graves cautioned, “Fraudsters deceive U.S. citizens into believing they are investing in legitimate cryptocurrency opportunities, but in reality, they are handing over their money to criminals.”

Rising Threat of Crypto Scams

The DOJ highlighted that such schemes led to over $2 billion in losses in 2022 alone, and the problem is escalating. The FBI traced the stolen funds to multiple cryptocurrency wallets still holding over $6 million and is working with international partners, including Tether, to recover the remaining assets. The investigation is ongoing, and several U.S. attorneys, including those from the National Cryptocurrency Enforcement Team, are prosecuting the case.

With the rising popularity of cryptocurrencies, authorities are warning the public to remain vigilant against scams and ensure they only invest through verified platforms.