FBI Tracks Global Victims in Wake of $1B Crypto Scam Fallout

The U.S. Federal Bureau of Investigation (FBI) is actively seeking victims of the SafeMoon cryptocurrency scheme following the conviction of its founder, Kibret Teklemariam. Teklemariam was recently found guilty of orchestrating a multi-million-dollar fraud that defrauded investors under the guise of a blockchain-based cryptocurrency platform. The conviction marks a pivotal moment in the ongoing investigation into the operations and financial damage caused by the project.

SafeMoon, which emerged in 2020, promised high returns to investors through a unique token model that included a built-in reward system. However, the FBI and the Department of Justice have since alleged that the company engaged in misleading marketing and deceptive practices to attract a global investor base. According to court documents, Teklemariam and his team used aggressive social media campaigns and influencer endorsements to promote the token, often downplaying the risks involved.

The scale of the fraud appears to be extensive. The U.S. Securities and Exchange Commission (SEC) estimates that SafeMoon raised over $1 billion from approximately 1.5 million investors. Many of these individuals, particularly retail investors, were enticed by the promise of compounding returns and low entry barriers. The FBI has now launched a dedicated effort to identify and contact victims across the United States and internationally, urging them to come forward with details of their investments.

The conviction of Teklemariam has raised broader questions about the regulatory landscape for cryptocurrencies. The SEC and other agencies have increasingly focused on enforcing compliance and investor protection standards in the fast-evolving crypto market. This case is expected to serve as a precedent for future enforcement actions against fraudulent or unregistered securities offered through digital currencies.

Experts suggest that the FBI’s move to locate victims is not only a procedural step toward potential restitution but also a signal to the broader crypto community about the U.S. government’s commitment to combating financial crime in the digital asset space. The process is expected to be lengthy and complex, particularly given the global nature of the investor base and the anonymity often associated with cryptocurrency transactions.