Joshua S. Levy, U.S. Attorney | U.S. Attorney for the District of Massachusetts
The United States Attorney’s Office has initiated a civil forfeiture action to recover various cryptocurrencies, including 7.23918814 Bitcoin, 14,120 Tether, and 105.75351403 Ethereum. These assets are alleged to be proceeds from an online investment fraud scheme with an estimated value exceeding $170,579.
An investigation launched in March 2024 revealed a cryptocurrency fraud targeting a Massachusetts resident. Known as “pig-butchering” schemes, these scams involve scammers gaining victims' trust through online interactions before persuading them to invest in fraudulent cryptocurrency platforms. Victims often make additional payments before realizing the deception. Such schemes typically cause significant financial and emotional harm to victims and are often operated by perpetrators located overseas.
Court documents allege that the Massachusetts victim joined a Facebook group called “Financial Independence Forum,” which falsely claimed to help individuals achieve financial independence through reliable investments. After seeing purported profit gains and receiving messages about effective trading strategies, the victim transferred funds to what is believed to be a fraudulent trading platform.
The investigation also identified three other victims across the United States who sent money to the same allegedly fraudulent platform. Some of these funds were traced back to a cryptocurrency account seized in October 2024.
Using wire communications for fraudulent schemes or conducting transactions designed to conceal criminal proceeds violates federal law. Civil forfeiture actions allow third parties to assert claims on property before it can be forfeited and returned to victims.
This case is one of several civil forfeiture actions filed by the U.S. Attorney’s Office targeting cryptocurrency frauds affecting Massachusetts residents.
United States Attorney Leah B. Foley and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service Boston Field Office, announced this development. Assistant U.S. Attorney Carol E. Head is handling the prosecution of this civil forfeiture action.
These allegations are part of a civil complaint; no corresponding criminal charges have been filed by the United States Attorney’s Office at this time.