Feds seize more than $112 million tied to crypto scams

The Department of Justice on Monday announced that it had seized roughly $112 million tied to myriad cryptocurrency schemes. 

Authorities recovered the funds after a judge granted warrants for six separate accounts allegedly used to launder funds from multiple cryptocurrency scams, the DOJ announced in a press release. The scams involved online actors cultivating relationships with online targets and encouraging them to send funds.

The DOJ did not identify any suspects nor did it announce any indictments. Assistant Attorney General Kenneth A. Polite, Jr. indicated that the DOJ would work to return the funds to the victims of the scams. 

"These particularly vicious frauds – where scammers carefully cultivate relationships with their victims over time – have devastated families and cost individuals their life savings," he said. "In addition to our tireless efforts to disrupt these schemes, we must also work to raise public awareness and help inform potential victims: be wary of people you meet online; seriously question investment advice, especially about cryptocurrency, from people you have not met in person; and remember, investments that seem too good to be true, usually are."

Known as "pig butchering," the online scams use social media platforms and other online communications platforms to build relationships with targets. Often, the malicious actors solicit a token investment at the start, after which they appear to show considerable gains. They then entice the mark to make a more substantial investment, that then disappears.

Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division indicated that the bureau continues "to see these schemes evolve and provide new avenues for criminals to exploit."

Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.