FBI Seizes $112m From Crypto Swindlers

FBI Seizes $112m From Crypto Swindlers

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Scammers allegedly used accounts to launder funds acquired via cryptocurrency confidence scams, known as “CryptoRom”.

$112 million that were linked to investment scams were dispersed over six separate accounts, used to launder funds of various cryptocurrency confidence scams, according to an official announcement by the US Department of Justice.

The schemes involve fraudsters cultivating long-term relationships with victims online to coax them to make cryptocurrency investments. The catch is that the transferred funds end up in the swindler’s pockets, unbeknownst to the victims, according to cybernews.com.

The scheme often involves faking a romantic interest in the victim, earning the scheme the title of “cryptocurrency romance” or “CryptoRom.”

“These particularly vicious frauds – where scammers carefully cultivate relationships with their victims over time – have devastated families and cost individuals their life savings,” Assistant Attorney General Kenneth Polite said.

Criminals would take their time developing a relationship with their victims over the course of several months, sometimes even more. Eventually, scammers introduce the idea of trading in crypto. Initial “investments” are often small, so as not to spook the victim.

These criminals then link the victim to a fake investment website, promising profitable returns. The money invested goes directly into the pockets of these cyber criminals.