FBI recovers $6 million in crypto linked to Southeast Asian scam

U.S. authorities have successfully seized over $6 million worth of cryptocurrency linked to a fraudulent investment scheme orchestrated by criminals based in Southeast Asia.

The scheme primarily targeted individuals in the United States, deceiving victims through fake cryptocurrency platforms that promised high returns.

According to the U.S. Department of Justice (DOJ), the scam involved perpetrators building trust with their victims before convincing them to invest in phony cryptocurrency platforms.

These platforms showed false profits, encouraging further investments until the victims were ultimately locked out, losing access to their funds.

The Federal Bureau of Investigation (FBI) played a key role in recovering the stolen assets by tracing the fraudulent transactions through blockchain technology.

The FBI tracked the funds to multiple cryptocurrency wallets, which still held more than $6 million in victim funds.

Authorities were able to seize these assets, marking a significant win in their efforts to combat the growing trend of cryptocurrency-related fraud.

U.S. Attorney Matthew Graves warned, "These scams are becoming more sophisticated, with fraudsters convincing victims they are making legitimate investments, only to drain their funds through deceptive means."

The DOJ emphasised that cryptocurrency investment schemes are on the rise, with reported losses exceeding $2 billion in 2022 alone.

The FBI, with the help of international partners and cryptocurrency issuer Tether (CRYPTO:USDT), continues to investigate the case in hopes of recovering more stolen funds.

Several U.S. attorneys, including members of the National Cryptocurrency Enforcement Team, are leading the prosecution.