US government recovers $3.5 million in Bitcoin to reimburse cyber fraud victims
The authorities said Bitcoin recent price increase would aid their efforts to reimburse the fraud victims.
Bitcoin’s surge to a record high of over $107,000 has boosted the US government’s efforts to reimburse victims of a business email compromise (BEC) scheme.
On Dec. 16, the US Department of Justice (DOJ) announced the recovery of 32.68 BTC, valued at over $3.5 million, stolen in a December 2023 cyber fraud case.
The recovery resulted from a collaborative investigation involving the US Secret Service and the US Attorney’s Office’s Asset Forfeiture Unit.
The fraud
According to the DOJ, the BTC was obtained through a BEC scheme targeting a real estate company. Fraudsters infiltrated the company’s system and issued fraudulent wire transfer instructions, siphoning over $1 million.
The investigation further revealed that approximately ten other individuals and businesses fell prey to similar scams. These victims reported losses ranging between $75,000 and $425,000.
The authorities noted that the stolen funds were laundered through multiple bank accounts, including those managed by money mules, before being consolidated into a single crypto wallet. The wallet was traced to fraudsters operating out of Nigeria.
At the time of seizure, the 32.68 BTC was approximately $900,000. However, Bitcoin’s recent price rally has significantly increased its worth to around $3.5 million, according to CryptoSlate data, with Bitcoin trading at $107,262 at press time.
Reimbursement efforts
The authorities believe the surge in Bitcoin’s value will allow all ten claimants to be fully reimbursed for their losses.
The US Attorney’s Office has filed a civil forfeiture case to recover the seized assets and ensure restitution for victims.
US Attorney Tessa Gorman emphasized the importance of civil forfeiture as a key tool in supporting victims, even before the perpetrators are apprehended.
Gorman stated:
“I commend the quick work by law enforcement and the Asset Forfeiture Unit who moved to seize this Bitcoin and are working diligently to make these victims whole.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Daily: ECB President Lagarde rejects bitcoin for Eurozone reserves while the Czech central bank considers it and more
European Central Bank President Christine Lagarde said bitcoin is not an option as a reserve asset for the Eurozone’s central bank reserves, citing liquidity, security and regulatory concerns.Meanwhile, the Czech National Bank approved a proposal from Governor Aleš Michl to assess diversifying some of its country’s reserves into bitcoin.
'Inevitable collapse': Trump’s crypto push sparks concern at Paul Singer's Elliott Management: FT
The hedge fund said in a new investor letter that the “inevitable collapse” of the crypto bubble “could wreak havoc,” according to the Financial Times.Elliott’s Paul Singer has never been a fan of crypto, telling WSJ in 2023 that cryptocurrencies are “completely lacking in any value.”
Kiyosaki Dumps Gold and Silver, Projects Bitcoin at $250K by 2025
Bulls Eye Reversal as Solana Tests Support After 25% Drop
Trending news
MoreCrypto prices
More
