US Authorities to Compensate Victims of Fake Crypto Sites with $7 Million Recovery

U.S. authorities will return $7 million to victims of fraudulent cryptocurrency platforms.

The Eastern District of Virginia’s Attorney’s Office reported that the perpetrators built trusting relationships with users, only to redirect them to counterfeit websites.

After the victims invested, the funds were funneled through over 75 bank accounts belonging to shell companies before being sent overseas, disguised as internal transfers.

These fraudulent sites promised victims high returns on supposed investments. However, when victims attempted to withdraw their funds, the scammers demanded additional payments under the pretext of covering profits taxes.

In 2023, authorities managed to recover part of the stolen money. The U.S. Secret Service located the funds in a foreign bank account and initiated civil forfeiture proceedings. Following a court settlement, U.S. authorities obtained the right to return $7 million.

Victims have been encouraged to contact the Secret Service for compensation.

It’s worth noting that on February 28, the Ohio Attorney General announced plans to return $8.2 million to victims whose funds were seized from the offenders. In that case, the scammers employed a «random number» scheme.