The US authorities have confirmed in their latest update that they will return $7 million to the victims of a scam which operated fake crypto-investment platforms.
Important Highlights
- US authorities are planning to refund $7M taken from a foreign banking institution by victims of an investment scam involving cryptography.
- They gain the trust of the victim only to have them directed to the fake websites.
- Fraudsters transfered loot through 75 fake company accounts
- Secret Service began civil forfeiture in 2023 after the money was frozen by the Secret Service.
- Secret Service asks for victims to reach out to its platform in order to recover their losses
US authorities started the return of $7 million dollars to victims that were duped into sending money to an alleged crypto-investment platform. In a 21st March update, the US Attorney’s Office for Easter District, Virginia confirmed that the money was seized from a bank abroad.
Fraudulent Investment Scheme
As time went on, they gained the trust of their victims. The fraudsters used this trust to guide victims towards platforms that were disguised as genuine crypto investments. These websites used disguised design to trick victims into believing that they were real crypto investment opportunities. The websites displayed false information about investment returns and growth for the victims.
The attempts of the victims to withdraw their money became chaotic when the scammers pressed them to make more investments. In a common scam, the actors asked the victims for tax payments on profits made to gain access to the funds. In an effort to move stolen money, scammers set up 75 accounts under fake entities.
Scammed No More
US authorities followed the trail of funds, noting the fact that actors were sending the proceeds overseas to foreign banks. However, they disguised these transactions as regular domestic wire transfer that is difficult to track.
Secret Service seized part of the money in 2023. The US District Court initiated the civil forfeiture procedure. However, banks made claims against frozen funds. It forced the US authorities into a $7-million settlement.
Secret Service has encouraged victims to get in touch and ask for money back. This case is part of the cryptocurrency-related crimes. Chainalysis is a Blockchain analytics firm that warns that the crypto-crime has now reached a professionalized stage that attracts efficient cybercriminal organizations.
Scammers are targeted in Australia
The Federal Police in Australia notified 130 people of an email scam that targeted users of digital assets. The update of March 21, which copied the identity of the sender as an authentic crypto exchange, was sent to 130 individuals in Australia.
Around the same time, social media users of X revealed scam messages sent on March 14, disguised to look like they were from Gemini or Coinbase. They try to fool the user into opening a new wallet whose recovery phrase is controlled by the scammers.
This scam was a variation of a more traditional financial attack, where actors used SMS or encrypted messaging platforms to inform victims that their crypto account had been compromised. The sender was a Binance employee.
The fake codes were spoof to look like they appeared in a legitimate crypto exchange message. The scammers sent victims a message asking for help and advising them to transfer crypto to a trust wallet to protect themselves. Scammers controlled the trust wallet and stole the funds deposited.
Cybersecurity Threats
Cybersecurity has also become an important component within the crypto-space as criminals are targeting holders of digital assets. Malwarebytes, a cybersecurity company warned about this on March 18th. They hid malware in the “cracked” The TradingView premium software is an excellent way to enhance your trading experience.
The Incident Response Team found out on the 17th of March that scammers are using remote-access trojans to steal crypto from 20 extensions for Google Chrome.
This discovery was made to warn crypto-users against investing in a hurry. Users are encouraged to use official platforms and websites. Authorities warn crypto-holders against sharing recovery phrases and private keys.
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Source: e-cryptonews.com
