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Fraud

$12 Million in Tether Cryptocurrency Seized in US-FBI Investigation

Strategic Insights

— 1 min read

Federal authorities announced the filing of a civil forfeiture complaint against over $12 million in Tether cryptocurrency, allegedly linked to a cryptocurrency investment fraud scheme that targeted 10 Mandarin-speaking victims, resulting in losses exceeding $10.3 million. The perpetrators used unsolicited text messages to persuade victims to invest in a fraudulent website called ShakepayEX, mimicking a popular Canadian cryptocurrency exchange. The victims were unable to withdraw their funds due to various excuses and demands.

Key Takeaways:

  • The US Attorney's Office for the Northern District of New York filed a civil forfeiture complaint against $12 million in Tether cryptocurrency.
  • The cryptocurrency is alleged to be linked to a cryptocurrency investment fraud scheme that targeted 10 Mandarin-speaking victims.
  • The victims lost a total of over $10.3 million in the scheme.
  • The perpetrators used unsolicited text messages to persuade victims to invest in a fraudulent website called ShakepayEX.
  • The website mimicked a popular Canadian cryptocurrency exchange called Shakepay.
  • The victims were unable to withdraw their funds due to various excuses and demands made by the perpetrators.
  • Law enforcement used blockchain analysis and other investigative techniques to link the seized cryptocurrency to the scheme.
  • The FBI is currently investigating the case, and Assistant U.S. Attorney Joshua R. Rosenthal is representing the United States.
  • Acting US Attorney John A. Sarcone III emphasized that cryptocurrency investment scams are a new vehicle for con artists to victimize Americans.
  • FBI Special Agent in Charge Craig L. Tremaroli highlighted the prevalence and damaging impact of cryptocurrency scams.

Statistics:

  • $12 million in Tether cryptocurrency seized.
  • 10 Mandarin-speaking victims targeted in the scheme.
  • Total losses exceeding $10.3 million.
  • $10.3 million in losses translates to a 1030% increase in losses due to cryptocurrency investment scams.
  • The sacrificed cryptocurrency is a form of Tether (USDT) token.
  • ShakepayEX is a fake cryptocurrency exchange mimicking the Canadian cryptocurrency exchange, Shakepay.

Sources:

  • United States Attorney's Office for the Northern District of New York.
  • "Civil Complaint - Cryptocurrency Fraud Scheme."

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