The Department of Justice in the United States has made a groundbreaking announcement stating that they have seized digital assets worth approximately $112 million from cybercriminals who were involved in cryptocurrency fraud and money laundering.
According to the US Department of Justice, six accounts were issued with arrest warrants by courts in Arizona, Central District of California, and Idaho District.
Prosecutors believe that these accounts were used to launder money from cryptocurrency scams.
These fraudsters would find their victims online, build a rapport with them for months and then persuade them to invest in sham cryptocurrency trading platforms.
Frequently, scammers would impersonate investment advisors or customer service representatives on phony platforms to convince individuals to download bogus apps or malicious smart contracts onto their devices.
After being deceived, the funds of victims would be sent to cryptocurrency addresses and accounts that were controlled by scammers and their partners.
At times, fraudsters would allow victims to withdraw their first profits to establish their confidence in the scam.
However, after a large investment, the funds of victims would be blocked. To unblock their funds, scammers would request additional investments, taxes, or fees, with promises that it would allow victims to retrieve their money.
Regrettably, victims could not withdraw any more funds. As a result, the US Department of Justice strongly advises the public to be vigilant when engaging with people on the Internet and to exercise a more critical approach to investment advice, particularly in the realm of cryptocurrencies.
Recently, the US Federal Bureau of Investigation (FBI) revealed that the number of cryptocurrency fraud cases in 2022 surged by 183%, with a total value of $2.57 billion.