US Government Takes Action to Retrieve Stolen Crypto Assets Linked to Fraud from Binance
Lately, the United States has experienced a rise in crypto scams like phishing and fraudulent schemes. In one such case, the US Attorney’s Office has taken legal action to recover cryptocurrency from Binance. This cryptocurrency is suspected to be the result of a fraud scheme that targeted a Massachusetts business through business email compromise (BEC). To ensure a fair process, third parties can also claim ownership of the assets before they are forfeited to the United States and returned to the victims.
US Government Aims to Retrieve Crypto Assets:
The government is taking steps to seize cryptocurrency from seven accounts held at Binance, a well-known cryptocurrency exchange and custodian. These accounts contain different digital assets like Bitcoin (BTC), Tether (USDT), ApeCoin (APE), an ERC-20 token called JASMY, Origin Protocol (OGN), Shiba Inu (SHIB), eCash (XEC), TLM, and Binance Coin (BNB).
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As per the official statement, the investigation into this specific fraud scheme began in March 2022. It started when a business in Massachusetts received a fraudulent email and was deceived into transferring a significant amount of $898,342 from their local bank account to an account opened in California.
Stolen Funds Lead to Binance:
The illegally acquired funds were traced to a different bank account and later converted into Bitcoin on a crypto exchange. To make the money trail harder to follow, the funds were moved through several intermediary wallet addresses, a tactic often used in money laundering transactions. Eventually, some of the funds were traced to accounts held at the Binance exchange, where they were seized in August and September 2022.
According to federal law, it is against the rules to use wire communications in a fraudulent scheme to deceive others and gain money or property through dishonest means. The complaint filed by the US Attorney’s Office states that the confiscated currency is believed to be the profits from the wire fraud and property connected to money laundering.
Following recent crypto news, there has been a rise in crypto phishing scams and BEC fraud in the United States, leading to substantial financial losses for individuals and businesses. In response, the US Attorney’s Office has taken civil forfeiture actions to dismantle criminal networks and compensate the victims for their losses. The goal is to disrupt these illegal activities and ensure that those affected receive proper restitution.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.