The U.S. Attorney’s Office for the Eastern District of Virginia has announced the recovery and clearance of title to approximately $1.7 million in cryptocurrency that was obtained through an investment fraud scheme. The assets, which include 420,740.422314 USDT (Tether) and 1,249,996.15 BUSD (Binance USD), were seized using civil asset forfeiture procedures.
According to court documents, the fraudsters contacted victims through unsolicited text messages and social media interactions that appeared accidental. After establishing communication, they moved conversations to encrypted chat applications and built trust with the victims. The perpetrators then encouraged the victims to invest in cryptocurrency via a spoofed website designed to mimic a legitimate investment platform. Instead of investing the funds as promised, the site redirected the money to accounts controlled by the perpetrators.
The fraudulent website falsely reported substantial gains on the victims’ investments. When attempts were made to withdraw significant amounts, the perpetrators demanded additional payments under claims such as taxes or fees on profits. In reality, only small withdrawals were permitted before all remaining funds were stolen.
To conceal their activities, those responsible laundered the stolen cryptocurrency by conducting multiple complex transactions and rapidly exchanging different types of digital assets.
Agents from the United States Secret Service seized both USDT and BUSD from three separate cryptocurrency wallets linked to the scheme. The government initiated a civil forfeiture action by filing a complaint in U.S. District Court for these assets.
Lindsey Halligan, U.S. Attorney for the Eastern District of Virginia; William Mancino, Special Agent in Charge of the U.S. Secret Service Criminal Investigative Division; and Meghan Dubea, Resident Agent in Charge of the U.S. Secret Service Raleigh Resident Office, jointly announced: “The United States is now in the process of returning that property to the victim.”
Assistant U.S. Attorney Kevin Hudson handled this matter.
Further details about this case can be found on websites for both the U.S. Attorney’s Office for the Eastern District of Virginia and the District Court for the Eastern District of Virginia, as well as through PACER by searching Case No. 3:25-cv-713.
