US Authorities to Return $7 Million to Cryptocurrency Scam Victims

US authorities have initiated the process of returning $7 million to victims who were deceived into sending money to fraudulent cryptocurrency investment platforms. The announcement was made by the Eastern District of Virginia’s US Attorney’s Office on March 21, 2025. The scam involved fraudsters who initially contacted victims and built trust over time. Once they had gained the victims' confidence, the scammers directed them to websites that appeared to be legitimate cryptocurrency investment platforms.

These fake websites were designed to mislead victims into believing they were investing in genuine crypto opportunities. The sites displayed fabricated data indicating that the victims’ investments were growing and yielding substantial returns. When victims attempted to withdraw their funds, the scammers employed pressure tactics to persuade them to invest even more. One common tactic was claiming that victims needed to pay taxes on their supposed profits before they could access their funds.

The stolen money was transferred through more than 75 different bank accounts, all set up under shell companies that existed only on paper. The funds were then sent to banks outside the United States, with the transfers disguised to resemble normal domestic wire transfers, making them more difficult to trace. The United States Secret Service took action in 2023, seizing some of the stolen funds from a foreign bank and initiating a civil forfeiture action in a US District Court.

The foreign bank initially made a claim against the seized money, but US authorities eventually reached a settlement agreement for $7 million of the funds. Victims of this scam have been instructed to contact the Secret Service to petition for the recovery of their losses. This case highlights the growing trend of cryptocurrency-related crimes, which are increasingly being perpetrated by sophisticated cybercriminal groups.

Similar scams have been reported in other regions, underscoring the global nature of this issue. Cybersecurity in the cryptocurrency space is becoming increasingly important as new types of malware and remote access trojans target cryptocurrency held in various wallet extensions. Authorities continue to warn crypto users to exercise caution when investing, recommending the use of only official websites and apps from trusted exchanges and advising against sharing recovery phrases or private keys with anyone.