The United States Department of Justice has announced that it has confiscated around $112 million in digital assets from criminals involved in cryptocurrency scams and money laundering.
Courts in Arizona District, the Central District of California and Idaho District have issued arrest warrants for six accounts that were used to launder money obtained as a result of digital currency fraud. Prosecutors reported that the criminals apparently used the Internet to identify their targets, building relationships with them over a period of time before persuading them to invest in questionable crypto-trading sites.
Fraudsters regularly impersonate financial analysts or customer service staff on fake websites, persuading people to download malicious apps or smart contracts to their mobile phones. Money received from defrauded customers is then sent to crypto-addresses and accounts operated by the scammers and their allies. In some cases, victims are even allowed to receive their initial profits to create a sense of trust in the fake plan.
But after making huge investments, the finances of exploited users cannot be withdrawn. To unfreeze them, fraudsters demand additional investments, taxes or fees, assuring them that this will allow them access to their money. Nevertheless, no other withdrawals are possible after that. Thus, the US Department of Justice urged citizens not to be so trusting of those with whom they communicate on the Internet and to be more sceptical of investment advice, especially if it involves cryptocurrencies.
In its latest statistics, the US Federal Bureau of Investigation reported that cryptocurrency fraud reached a staggering $2.57 billion in 2022, an increase of 183%.
