The U.S. Attorney’s Office for the Eastern District of Virginia has announced the recovery and return of nearly $1.7 million in cryptocurrency to victims of an investment scam. The funds, consisting of 420,740.422314 USDT (Tether) and 1,249,996.15 BUSD (Binance USD), were seized as proceeds from a fraudulent cryptocurrency scheme.
According to court documents, the fraudsters initiated contact with two victims through unsolicited text messages and social media interactions that appeared accidental. After establishing communication, they persuaded the victims to move their conversations to encrypted chat applications and built trust over time. The perpetrators then encouraged the victims to invest in cryptocurrency using a website that mimicked a legitimate platform but was designed to divert funds directly to the scammers.
The fraudulent site showed false gains on investments, but when the victims tried to withdraw significant amounts, they were pressured into sending more money under false pretenses such as owing taxes or fees on supposed profits. Ultimately, the victims could only withdraw trivial amounts while most of their money was stolen. The stolen funds were then laundered through a series of complex transactions and quick exchanges between different cryptocurrencies in an effort to conceal their origin.
Agents from the United States Secret Service seized the digital assets from three cryptocurrency wallets involved in these transactions. A civil forfeiture action was initiated by filing a complaint in U.S. District Court for the Eastern District of Virginia.
Lindsey Halligan, U.S. Attorney for the Eastern District of Virginia; William Mancino, Special Agent in Charge of the U.S. Secret Service Criminal Investigative Division; and Meghan Dubea, Resident Agent in Charge of the U.S. Secret Service Raleigh Resident Office jointly announced this recovery.
“This matter was handled by Assistant U.S. Attorney Kevin Hudson,” according to the press release.
Further details about this case can be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia or through PACER by searching Case No. 3:25-cv-713.
