US to Return $7M Stolen in Fake Crypto Investment Scam

US authorities will return $7 million to victims of a cryptocurrency investment scam that tricked them into sending funds to fraudulent websites. The US Attorney’s Office for the Eastern District of Virginia confirmed the details in a statement on March 21.

Scammers built fake investment platforms designed to look like legitimate cryptocurrency exchanges. They contacted victims, gained their trust, and encouraged them to invest. Once victims deposited funds, they were shown false profits to convince them their investments were growing.

However, when victims attempted to withdraw their money, scammers blocked access. Some victims were pressured into sending more funds under the false claim that they owed taxes or fees before they could receive their earnings.

Funds Moved Through Shell Companies and Sent Overseas

Authorities revealed that the stolen money was funneled through more than 75 bank accounts registered under shell companies. The transfers were disguised as domestic wire transactions, but the funds were actually sent to a foreign bank.

The United States has recovered and cleared title to $7 million of investment fraud proceeds using civil asset forfeiture; victims may submit petitions to have the funds remitted back to them.#USSS #EDVA #justice https://t.co/h4DlRzQgZx

— U.S. Attorney EDVA (@EDVAnews) March 21, 2025

The US Secret Service launched an investigation and, in 2023, seized some of the stolen funds from a bank outside the US. To recover the money, officials filed a civil forfeiture action in a US District Court.

$7 Million Secured for Victims Through Legal Settlement

During the legal process, the foreign bank that held the seized funds also filed a claim to retain the money. After negotiations, US authorities reached a settlement that allowed them to secure $7 million for victims.

The US Secret Service is now asking those affected by the scam to come forward and submit claims to recover their losses. Officials continue to investigate similar fraudulent schemes targeting cryptocurrency investors.

Rise in Cryptocurrency-Related Scams

Law enforcement agencies worldwide have noted an increase in cryptocurrency scams. In its 2025 Crypto Crime Report, blockchain analytics firm Chainalysis stated that organized cybercriminal groups are using advanced methods to target investors.

On March 21, Australian federal police alerted 130 people about a scam that spoofed text messages from major crypto exchanges such as Binance. Other recent scams impersonated Coinbase and Gemini, tricking users into creating fake wallets controlled by fraudsters.

Holy shit. Did anyone else get the "Migrate to Coinbase Wallet" e-mail? It looks very polished though transparently a scam. Be careful out there. @coinbase @CoinbaseWallet @CoinbaseSupport pic.twitter.com/nApchFKxdm

— Lucky8 (@Lucky8Token) March 14, 2025

Cybersecurity specialists have additionally indicated fresh malware dangers. Malwarebytes discovered a cryptocurrency-stealing virus concealed in illegal copies of TradingView Premium. 

Furthermore, Microsoft’s Incident Response Team discovered that cybercriminals are employing a remote access trojan to extract digital assets from 20 various cryptocurrency wallet extensions on Google Chrome.

Officials persist in addressing crypto-related fraud and are advising investors to confirm the legitimacy of any platform prior to transferring funds.