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DOJ Seizes $9M in Cryptocurrency from Scam Ring Amid Record Year for Crypto Crime

CryptoDOJ Seizes $9M in Cryptocurrency from Scam Ring Amid Record Year for Crypto Crime

Federal authorities have seized nearly $9 million in cryptocurrency linked to a scam ring, according to the U.S. Justice Department (DOJ). The seized funds, in Tether (a cryptocurrency pegged to the U.S. dollar), were associated with a group that scammed over 70 individuals. The DOJ stated that this action disrupted the financial infrastructure of an organized network of scammers, emphasizing that these criminals prey on ordinary investors by creating deceptive websites. The scam, known as “pig butchering,” combines elements of romance scams and investment scams. In this case, scammers convinced victims to make cryptocurrency deposits by falsely representing investments with trusted firms and exchanges, when in reality, the funds were directed to nonexistent trading platforms. The DOJ highlighted the use of money laundering techniques like “chain hopping” to quickly move and exchange the stolen cryptocurrency through various addresses. This action comes amid a record year for crypto-related crime, totaling $20 billion, despite market downturns. The importance of ongoing education, particularly by credit unions, in combating such scams was emphasized.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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