The U.S. Attorney’s Office for the Eastern District of Virginia has recovered nearly $1.7 million in cryptocurrency through civil asset forfeiture, following an investigation into a cryptocurrency investment fraud scheme. The funds—420,740.422314 USDT (Tether) and 1,249,996.15 BUSD (Binance USD)—were seized as proceeds from the fraudulent operation and are being returned to the victims.
Court documents reveal that the fraudsters contacted two victims via unsolicited text messages and social media, presenting their outreach as accidental. After establishing contact, they persuaded the victims to continue communicating on an encrypted chat application. The perpetrators built trust before convincing the victims to invest in cryptocurrency through a website that mimicked a legitimate investment platform but instead diverted funds to those running the scam.
The fake site reported false gains on investments and demanded additional payments under the pretense of taxes or fees when victims tried to withdraw larger sums. In reality, the perpetrators did not allow meaningful withdrawals and ultimately stole the invested money. To obscure their tracks, they laundered these funds through a series of complex transactions and quick exchanges between different cryptocurrencies.
Agents from the United States Secret Service seized assets from three separate cryptocurrency wallets linked to this scheme. A civil forfeiture complaint was filed in U.S. District Court for these funds.
“This matter was handled by Assistant U.S. Attorney Kevin Hudson,” according to officials involved in the case.
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 made this announcement.
Further details about this case can be found on the websites of both the U.S. Attorney’s Office for the Eastern District of Virginia and the District Court for the Eastern District of Virginia. Information is also available on PACER by searching Case No. 3:25-cv-713.
