US Authorities to Reimburse $7 Million to Victims of Fake Crypto Scams

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

According to a statement from the Eastern District of Virginia’s prosecutor’s office, the criminals built trust with users and then redirected them to fake websites.

After the victims deposited funds, the money was funneled through over 75 bank accounts linked to shell companies, before being sent abroad, disguised as domestic transfers.

The fake websites promised victims high returns from supposed investments. However, when individuals attempted to withdraw their funds, the fraudsters demanded additional payments, claiming they were necessary to cover income tax obligations.

In 2023, a portion of the stolen funds was recovered. The U.S. Secret Service identified the money in a foreign bank account and initiated civil asset forfeiture proceedings. Following a legal agreement, U.S. authorities gained the right to return $7 million to the victims.

Those affected have been encouraged to contact the Secret Service for compensation.

Additionally, on February 28, the Ohio state prosecutor announced it would return $8.2 million seized from criminals to users. In that instance, the fraudsters employed a «random number» scheme.