Federal authorities recover nearly two million dollars stolen in cryptocurrency investment fraud scheme in Virginia
Alexandria, Virginia – The U.S. Attorney’s Office for the Eastern District of Virginia announced that $1,971,399.80 in fraud proceeds and property tied to money laundering has been successfully recovered through civil asset forfeiture. Federal officials confirmed that the funds, linked to an elaborate cryptocurrency scam, are now cleared for return to the victim.
According to court documents, the scam began when perpetrators reached out to the victim with an unsolicited text message referencing a visit to Central Park. This initial contact led to prolonged communication designed to build trust. The fraudsters then encouraged the victim to “invest” in cryptocurrency using a fraudulent website disguised to resemble a legitimate investment platform.
The site falsely reported significant profits, luring the victim to continue investing. But when the victim attempted to withdraw their funds, the perpetrators introduced new obstacles, claiming the victim owed taxes on their “profits” and coercing them to send even more money. Despite repeated attempts, the victim was never allowed to withdraw their funds, which were ultimately stolen.
Complex Money Laundering Scheme Unraveled
After stealing the funds, the perpetrators quickly laundered the money. They carried out a series of complex transactions, including rapid exchanges between different cryptocurrencies, to disguise the origins of the stolen assets.
In December 2024, investigators from the FBI and the Loudoun County Sheriff’s Office successfully traced and seized nearly $2 million across three cryptocurrency wallets linked to the fraud. Federal prosecutors then initiated a civil forfeiture action in U.S. District Court, formally claiming the seized funds as criminal proceeds.
Following court proceedings, the funds were ordered forfeited, officially authorizing their return to the victim.
The case underscores the growing threat of cryptocurrency-based fraud, where perpetrators manipulate trust and use sophisticated laundering tactics to conceal stolen funds. Authorities emphasized that successful recovery in this case reflects the effectiveness of coordinated investigations between federal and local law enforcement.
By securing the forfeiture and return of the stolen assets, federal officials not only delivered justice for the victim but also highlighted their commitment to aggressively pursuing cyber-enabled financial crime.
