US Government Aims to Forfeit Binance Crypto in Fraud Case

A recent press release states that the US Attorney's Office has taken legal action to reclaim cryptocurrency proceeds linked to a fraudulent scheme targeting a Massachusetts-based company.

In an attempt to recover the funds, the government intends to seize the cryptocurrency held in seven accounts on the Binance crypto exchange. These accounts comprise cryptocurrencies such as BTC, USDT, SHIB, and BNB.

The fraudulent activity, known as business email compromise (BEC) fraud, was brought to the investigators’ attention in March 2022. The scheme involved a deceptive email that led the Massachusetts company to transfer approximately $900,000 to a bank account located in California.

Subsequently, the funds were channeled through another bank account and converted to bitcoin on a crypto exchange. They were then transferred through a series of other crypto addresses in a manner consistent with tactics commonly employed in money laundering transactions, as stated in the press release.

By utilizing wire communications to engage in fraudulent practices and acquire money or property under false pretenses, the perpetrators violated federal law. The complaint alleges that the seized cryptocurrency represents proceeds from wire fraud and/or assets involved in money laundering.

In order for the property to be forfeited to the US government and returned to the victims, a civil forfeiture action allows third parties to assert their claims to the seized funds. These claims must be resolved prior to the forfeiture process.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.