The United States plans to return $7 million to victims who were duped by fraudulent cryptocurrency investment websites designed to mimic legitimate platforms, according to the U.S. Attorney’s Office for the Eastern District of Virginia.
How the Crypto Scam Worked
This social engineering scheme involved fraudsters reaching out to victims and building trust before leading them to spoofed crypto investment sites. These websites appeared professional and showed fake profits to convince users they were earning money.
Once victims deposited funds, the money was laundered through more than 75 different bank accounts registered to shell companies. Although the funds were sent overseas, they were falsely labeled as domestic wire transfers to avoid detection.
“When victims would attempt to make withdrawals, the perpetrators would coerce the victims to send even more money using tactics such as claiming they owed taxes on their supposed profits,” the statement said.
Secret Service Recovers Millions
In 2023, the U.S. Secret Service seized some of the stolen money from a foreign bank and initiated a civil forfeiture case. Although the bank tried to claim the funds, U.S. authorities eventually reached a $7 million settlement.
Victims are now being urged to contact the Secret Service to start the petition process for recovering their losses.
Rise in Crypto Scams Worldwide
This case highlights a growing trend of increasingly sophisticated crypto-related scams. Chainalysis, in its 2025 Crypto Crime Report, said that crypto crime has become more organized, with professional cyber syndicates dominating the space.
Other recent incidents include:
- Australian Federal Police Warning: On March 21, they alerted 130 people about a scam using fake message IDs that mimicked real crypto exchanges like Binance.
- Spoofed Messages on X: Users reported scam messages impersonating Coinbase and Gemini, which attempted to trick users into setting up wallets using pre-made recovery phrases under the scammers’ control.
- Malware Disguised as Trading Software: On March 18, cybersecurity firm Malwarebytes warned about a crypto-stealing malware hidden in a pirated version of TradingView Premium.
- Chrome Wallet Trojan: Microsoft’s Incident Response Team recently identified a new remote access trojan that targets crypto wallets installed as Chrome browser extensions.
These scams underline the importance of cybersecurity and skepticism when dealing with unsolicited investment offers, especially in the crypto space.
