The United States has seized over $868,247 in cryptocurrency linked to a confidence scheme, as announced by U.S. Attorney Jeanine Ferris Pirro, Deputy Chief Claudia Quiroz of the Computer Crime and Intellectual Property Section, and Special Agent in Charge David K. Porter of the FBI Honolulu Field Office.
Cryptocurrency confidence schemes typically begin with criminals contacting potential victims through misdirected text messages, dating apps, or professional groups. The perpetrators then gain the victim's trust and recommend cryptocurrency investments by highlighting their own or an associate's success.
These schemes often involve directing victims to fake investment platforms on websites that mimic legitimate ones. Victims are assisted in opening a cryptocurrency account on a U.S.-based exchange and transferring money from their bank accounts to this account. Subsequently, they are instructed to transfer their assets to the fraudulent platform.
Initially, these platforms show profitable returns to encourage further investment; however, all funds are ultimately routed to wallets controlled by the criminals. Perpetrators may allow early withdrawals of "profits" to build trust but eventually prevent victims from accessing their funds entirely.
Victims who suspect they have fallen prey to such scams should contact the FBI’s Internet Crime Complaint Center at https://www.ic3.gov.
The investigation is being conducted by the FBI Honolulu Field Office with support from the Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit. The Department of Justice acknowledged Tether for assisting in transferring these assets.
Prosecution is being handled by Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr., along with Trial Attorneys Gaelin Bernstein and Stefanie Schwartz from the Computer Crime and Intellectual Property Section, and Daniel Zytnick from the Consumer Protection Branch of the Department of Justice.
