Department of Justice to Return $470,735 to Victims of Cryptocurrency Investment Scheme

PORTLAND, Maine: The United States Attorney's Office for the District of Maine announced today that the Department of Justice will return about $470,735 to two Maine victims of a cryptocurrency investment scheme.

According to court records, more than $800,000 belonging to the victims was transferred to cryptocurrency wallets controlled by criminal actors in 2022. The FBI seized 470,773 USDT (Tether)-a form of cryptocurrency equivalent in value to the dollar-traced to the victims' payments. The U.S. Attorney's Office subsequently filed a civil forfeiture complaint alleging these proceeds were traceable to wire fraud and were involved in money laundering offenses. The U.S. District Court ordered the proceeds to be forfeited to the United States, which is now providing the funds to the two victims.

The U.S. Attorney's Office warns that cryptocurrency investment schemes are all too common.

In many cryptocurrency investment schemes, scammers engage in social engineering to steal a victim's funds. Scammers often use a fake identity and cold-contact a victim through messaging apps, social media, dating apps, or other platforms. Scammers may pretend to have contacted the wrong number but then continue communicating with the victim. The scammers establish a relationship and build trust with the victim by continuing to message over days, weeks, or months. Frequently, the scammers then make up a fake investment opportunity or an emergency to induce the victim to send payments in cryptocurrency. Scammers may convince the victim to use fake websites or apps to "invest" in cryptocurrency, and will often coach the victim through the "investment" process and show the victim fake returns on their "investment." Rather than investing money on a legitimate platform, the victim is tricked into sending cryptocurrency to wallets controlled by the scammers. If the victim tries to withdraw money from the fake site or app, the victim is often told to pay additional fees or taxes-but the scammers do not return the victim's funds after the fake fees or taxes are paid.

For more information about cryptocurrency investment schemes, please visit https://www.ic3.gov/PSA/2023/PSA230824.

If you believe you or someone you know may be a victim of a cryptocurrency scam, in addition to reporting to your local police department, you should immediately submit a report to the FBI Internet Crime Complaint Center at https://www.ic3.gov or contact your local FBI Field Office.

The FBI handled this case. The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets.