- U.S. authorities seized over $6 million in crypto linked to scammers in Southeast Asia.
- Scammers lured victims through dating apps and networking sites, convincing them to invest in fraudulent platforms.
- The FBI tracked the stolen funds using blockchain, recovering assets with international support.
Crypto scammers in Southeast Asia have been the center of a major takedown after U.S. authorities seized over $6 million in cryptocurrency from wallets connected to investment fraud targeting American citizens.
The operation, announced by U.S. Attorney for the District of Columbia Matthew Graves and several other top law enforcement officials, is a significant victory in the ongoing fight against digital assets scams.
The fraudulent activity involved confidence investment schemes, where criminals gained victims’ trust through online interactions, convincing them to invest in fake cryptocurrency platforms.
These scams often begin with seemingly innocuous messages sent through dating apps, text messages, or professional networking sites. The fraudsters typically portray themselves as successful investors and coax victims into investing in what appears to be a lucrative digital assets platform.
However, these platforms are fraudulent, designed to mimic legitimate investment websites while funneling victims’ funds into crypto wallets controlled by the criminals.
The FBI traced the victims’ funds using blockchain technology, eventually locating multiple wallets still holding over $6 million. Law enforcement agents collaborated with the Department of Justice’s Office of International Affairs and Tether, the popular stablecoin issuer, to recover the stolen funds.
In many cases, scammers lure victims by allowing them to withdraw some of their initial “profits,” making the platform appear genuine. However, as victims invest more, they find themselves locked out of their accounts, with their assets gone.
Crypto Scams Continue to Rise, Victim Losses Surge in 2023
In 2022, the FBI’s Internet Crime Complaint Center reported that such schemes had targeted tens of thousands of Americans, resulting in over $2 billion in stolen assets. That figure has only increased, with over $5.6 billion lost to crypto-related crimes in 2023.
Special Agent Joseph Carrico of the FBI’s Knoxville Division emphasized the need for vigilance when investing in cryptocurrency. He said:
“The FBI along with our law enforcement partners will continue to investigate allegations of crypto scams, but the best defense is to educate yourself before making any investment. Remember, if it sounds too good to be true, it probably is.”
The prosecution team includes attorneys from multiple U.S. districts, reflecting the broad effort required to combat international crypto fraud. While scammers may operate overseas, U.S. authorities are proving they can still track, seize, and return stolen assets to defrauded investors.
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