U.S. Attorney’s Office, Online Investment Fraud, Massachusetts 2023

BOSTON – The long arm of the law is reaching into the shadowy world of cryptocurrency, as the U.S. Attorney’s Office in Massachusetts has filed a civil forfeiture action to claw back ill-gotten gains from a brazen online investment fraud. The feds are targeting 81,547 USDT (Tether) and 87,321 BEL (Bella Protocol), cryptocurrency seized and allegedly tied to a scheme that preyed on vulnerable investors.

The investigation kicked off in April 2022, sparked by a complaint from a Massachusetts victim. Court documents reveal the scam began in March 2022 with a cold approach on LinkedIn. A suspect – currently unnamed – initiated contact, then lured the victim into a series of communications conducted in Chinese through an undisclosed application. The hook? A seemingly legitimate cryptocurrency investment. The victim was convinced to download a fraudulent application disguised as a real crypto platform and subsequently deposited funds into the sham site.

This wasn’t an isolated incident. Investigators quickly uncovered a second victim in California, also reeled in through LinkedIn and subjected to the same deceptive tactics. The scam artists skillfully manipulated both victims into believing they were making sound financial investments, only to vanish with their money. Authorities were able to trace a portion of the stolen funds to a cryptocurrency wallet, leading to the seizure of the 81,547 USDT and 87,321 BEL.

Tether, a cryptocurrency pegged to the U.S. dollar, and Bella Protocol, a more volatile cryptocurrency, represent a significant haul. Federal law clearly prohibits the use of electronic communications in schemes to defraud, and this forfeiture action is a direct attempt to recoup losses and potentially return funds to the victims. This is the second such civil forfeiture filed by the U.S. Attorney’s Office targeting cryptocurrency tied to online investment fraud impacting Massachusetts residents.

“We’re not just going after the street-level thugs,” stated United States Attorney Rachael S. Rollins. “We’re tracking the money, no matter where it hides – even in the complex world of cryptocurrency.” Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, echoed the sentiment, emphasizing the agency’s commitment to combating cybercrime. Assistant U.S. Attorney Carol E. Head, leading the Asset Recovery Unit, is spearheading the forfeiture action.

The civil forfeiture process allows potential claimants to challenge the government’s right to the seized assets. It’s crucial to remember that the details outlined in the complaint are allegations at this stage. While the U.S. Attorney’s Office hasn’t filed criminal charges *yet*, the investigation remains open. Anyone believing they’ve been victimized by a cybercrime – including cryptocurrency scams, romance scams, or BEC fraud – is urged to contact USAMA.CyberTip@usdoj.gov. Don’t become another statistic.

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