U.S. Seizes Over $6 Million in Cryptocurrency from Southeast Asian Scammers

The U.S. government recently confiscated more than $6 million in cryptocurrency from criminals operating abroad, according to a statement from U.S. officials. The group, based in Southeast Asia, targeted people in the United States and stole millions through a fraudulent cryptocurrency investment scam.

The FBI tracked the stolen funds using blockchain technology and found several cryptocurrency wallets still holding over $6 million of the victims’ money.

These scams, known as “cryptocurrency confidence investment schemes,” often start with criminals reaching out to victims via text messages, dating apps, or investment groups. They build trust and convince victims to invest in what looks like a successful cryptocurrency opportunity. However, the investment platforms are fake, and any money sent goes straight into the criminals’ pockets.

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At first, victims may see fake profits and even be allowed to withdraw small amounts to gain their trust. But eventually, the criminals block victims from accessing their accounts and steal all the funds.

U.S. Attorney Matthew M. Graves stated, “These fraudsters trick people into thinking they’re investing in cryptocurrency, but they’re handing their money over to criminals.” He emphasized that even though many of these criminals are based overseas, the U.S. will continue working to recover stolen funds.

The FBI warns people to be cautious when investing, especially if something seems too good to be true. In 2022 alone, tens of thousands of Americans were victims of these schemes, leading to more than $2 billion in losses. The amount lost to cryptocurrency-related crimes increased by 45% in 2023, jumping from $3.8 billion to $5.6 billion.

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The FBI’s Knoxville Division is leading the investigation, with support from the Justice Department’s International Affairs Office and Virtual Asset Unit. The Department of Justice also acknowledged Tether’s help in recovering the stolen assets.

This case is being prosecuted by a team of attorneys from Washington, D.C., Tennessee, and the Justice Department’s Cryptocurrency Enforcement Team.