$9 Million Seized From Crypto Scammers Who Exploited Over 70 Victims: Authorities

SAN FRANCISCO — Federal authorities have seized nearly $9 million worth of the cryptocurrency Tether after the money was traced to a scam organization that exploited over 70 victims, the U.S. Department of Justice announced Tuesday.

Scammers convinced victims to make cryptocurrency deposits by falsely claiming that the victims were investing in trusted firms and exchanges, authorities said. The deposits were laundered through dozens of addresses and exchanged for several cryptocurrencies, a technique known as “chain hopping.”

The U.S. Secret Service San Francisco Field Office investigated the case.

“Through this significant seizure, we disrupted the financial infrastructure of an organized network of scammers who stole millions from victims across the United States,” Acting Assistant Attorney General Nicole Argentieri said in a news release.

“These scammers prey on ordinary investors by creating websites that tell victims their investments are working to make them money. The truth is that these international criminal actors are simply stealing cryptocurrency and leaving victims with nothing,”

Anyone who is a victim of a cryptocurrency or other internet scam is asked to file a report at ic3.gov and www.reportfraud.ftc.gov.