Americans aged 60 and above were duped most frequently and lost the most amount of money among any age group, the FBI said.
A federal judge has ordered the forfeiture of roughly $2.5 million worth of cryptocurrencies stolen via scams, the Department of Justice (DOJ) said in a May 23 statement.
The order, issued by U.S. District Court Judge Amir H. Ali, seeks to recoup funds stolen through cryptocurrency confidence schemes and return them to the United States.
Confidence scams begin with malicious actors reaching potential victims through seemingly misdirected text messages, dating apps, professional meetup groups, or investment groups, according to the DOJ.
The scammers gain a potential victim’s trust over time by using various manipulative tactics. Eventually, a crypto investment is introduced with the scammers touting their own supposed success or the successes of associates.
People who fall for such claims are directed to a fake investment platform that mimics a legitimate website. After accounts are opened and funds transferred, the criminals typically toy with the victims by allowing them to withdraw fake “profits” to convince them of the platform’s legitimacy.
After investors transfer a sizable amount into the account, the platform blocks withdrawals, locks the account, and disappears.
The United States uses asset forfeiture to recover assets from scammers that may be then used to compensate victims.
Federal law enforcement and agencies cooperate with other nations under whose jurisdiction the stolen funds are parked.
“Whether they are in our district’s streets or hiding behind a computer screen abroad, the United States will continue to hold fraudsters and grifters responsible, seize money they scam from hardworking Americans, and use our authority to compensate victims,” said U.S. Attorney Jeanine Pirro.
Stacey Moy, FBI special agent in charge of the San Diego Field Office, said cryptocurrency confidence schemes “defraud and manipulate vulnerable victims into losing devastating amounts of money.”
“We hope today’s announcement brings a measure of justice to the victims and serves as a reminder, the FBI will hold fraudsters accountable, no matter where they are located.”
The order to recoup $2.5 million is the latest in a series of actions the U.S. has taken to seize stolen crypto funds.
On May 23, the DOJ announced that the United States had seized more than $868,247 worth of cryptocurrency from perpetrators of a confidence scheme.
In September 2024, the United States seized more than $6 million from overseas perpetrators of another crypto confidence scam.
