In a recent bid to combat the growing rise of cryptocurrency tied to fraudulent activities, the United States Attorney's Office filed a civil forfeiture action targeting cryptocurrency alleged to be proceeds of a business email compromise (BEC) scheme focused on a Massachusetts resident. This marks the fifth civil forfeiture action of its kind in Massachusetts, highlighting the ongoing challenges faced in the digital currency space. This action targets 18.836 Bitcoin (BTC), which the authorities seized from a Binance.US account, currently valued at approximately $500,000, according to the United States Attorney's Office District of Massachusetts.
The investigation began in June 2022, uncovering a BEC fraud scheme, where unauthorized access to email accounts was obtained to manipulate commercial, real estate, and other financial transactions. As in this case, Massachusetts residents were targeted, with perpetrators often located overseas. This particular Massachusetts resident fell prey to the scheme, mistakenly wiring approximately $400,000 into a California bank account. According to court documents, a part of these funds was subsequently transferred to Binance.US and used to purchase the said amount of 18.836 BTC. Following a thorough investigation, the authorities managed to trace the funds to a Binance account and seize the BTC in July 2023.
Using wire communications as part of a scheme to defraud or to falsely obtain money or property constitutes a violation of federal law. The complaint alleges that the seized cryptocurrency was traceable to proceeds of the wire fraud. Civil forfeiture actions, like the one filed, allow third parties to assert claims to property before the property could be forfeited to the United States and returned to victims.
This recent development is part of a larger trend to tackle cryptocurrency related to fraud schemes, with this being the fifth civil forfeiture action filed by the U.S. Attorney's Office in Massachusetts. As the influence and popularity of digital currencies continue to grow, threats ranging from cybercrimes, including cryptocurrency scams, romance scams, and investment scams, have also been on the rise. As such, it is vital for individuals who believe they have fallen victim to such scams to report the matter to the appropriate authorities, with the [email protected] being a valuable resource
Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, announced the recent filing of the civil forfeiture action. It is being prosecuted by Assistant U.S. Attorney Carol E. Head, Chief of the Asset Recovery Unit. It is essential to note that the details contained in the civil forfeiture complaint are strictly allegations, and the United States Attorney's Office has not filed a corresponding criminal action on the matter.
