United States Files Forfeiture Action Against More Than $12 Million in Funds Involved in Cryptocurrency Investment Fraud and Money Laundering

ALBANY, NEW YORK - The United States Attorney's Office filed a civil forfeiture complaint on Friday against more than $12 million in Tether cryptocurrency relating to a cryptocurrency investment fraud scheme. Acting United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office for the Federal Bureau of Investigation (FBI), made the announcement.

According to the complaint, the FBI identified 10 female Mandarin-speaking victims of a cryptocurrency investment fraud scheme who lost at total of more than $10.3 million. The unidentified perpetrator(s) courted his victims after striking up unsolicited conversations via text message and then persuaded them to invest large sums of money using a fraudulent website called ShakepayEX, which was made to mimic a popular cryptocurrency exchange based in Canada. When the victims tried to withdraw their funds, they were met with various excuses and fraudulent demands. Law enforcement used blockchain analysis and other investigative techniques to determine that the cryptocurrency sought to be forfeited was tied to the scheme.

Acting United States Attorney Sarcone said: "Cryptocurrency investment scams are the latest vehicle for con artists from all over the world to victimize Americans right here in our backyards. But this civil action is the latest example that law enforcement can and will use all the tools at our disposal to ensure that those who abuse legitimate technology will not profit from their deviant conduct."

FBI Special Agent in Charge Tremaroli said: "Cryptocurrency scams are one of the most prevalent and damaging fraud schemes the FBI investigates. They have a devastating financial impact on victims and cause a tremendous amount of emotional distress. This filing serves as a reminder the FBI will continue to work with our partners to use every resource available to identify these schemes, investigate the criminals perpetrating them, and seek justice and relief for the victims."

The FBI is investigating the case. Assistant U.S. Attorney Joshua R. Rosenthal is representing the United States.

Anyone who believes they are a victim of a cybercrime - including cryptocurrency scams, romance scams, and investment scams - should contact the FBI's Internet Crime Complaint Center at https://www.ic3.gov.