Courtroom of Relief: Feds Recover Funds for Scammed Banker's Victims

In a recent turn of events, federal investigators have recovered over $1 million worth of cryptocurrency that was stolen from victims of a fraud scheme. The U.S. Attorney's Office in Chicago announced the seizure of approximately $1.4 million of a cryptocurrency known as Tether, which will now be returned to people who lost their money through an alleged fraud scheme. This marks one of the first times the U.S. government has recovered such funds from an unhosted virtual currency wallet.

The FBI revealed that the funds were recovered as part of its ongoing investigation into a fraud scheme where perpetrators posed as employees of Microsoft or Apple, as well as the victim's bank. The scheme began with a popup that informed victims their computer had been compromised, directing them to call Microsoft or Apple for assistance. The perpetrators then convinced the victims that their financial accounts were at risk and that they needed to move money from traditional bank accounts to cryptocurrency to keep it safe from hackers.

One victim told investigators that the scammers provided a letter purportedly from the United States Federal Reserve, including what appeared to be the signature of its chair, Jerome Powell. The victim alleged that the scammers asked him to install a digital currency wallet and a software program that allowed them to remotely access his computers and provided instructions on how to make the money transfers. The victim claimed that between $3-4 million was transferred at the direction of the scammers.

The scheme has impacted mostly elderly victims throughout the U.S., with at least two known victims living in the Northern District of Illinois. The recovery of these funds serves as a reminder that the government is committed to protecting victims of fraud and recovering stolen assets.


As the world of cryptocurrency continues to evolve, so do the challenges and risks associated with it. It is crucial for investors to remain vigilant and cautious when dealing with unregulated and unhosted virtual currency wallets. The recent recovery of funds by the FBI serves as a testament to the importance of law enforcement agencies in combating fraud and protecting victims.


In conclusion, the recovery of funds by the FBI in this fraud scheme highlights the importance of law enforcement agencies in protecting victims of financial crimes. As the world of cryptocurrency continues to grow, it is essential for investors to remain informed and cautious when dealing with unregulated and unhosted virtual currency wallets. By staying vigilant and reporting suspicious activities, investors can help protect themselves and others from falling victim to fraudulent schemes.