The U.S. government is taking action to forfeit millions of dollars in cryptocurrency from a Binance account, alleging involvement in wire fraud and money laundering related to a fraudulent investment scheme. The civil forfeiture case was filed in the U.S. District Court for the District of Massachusetts on February 19, targeting digital assets seized in October of the previous year.
The seized cryptocurrency, known as the Defendant Property, includes 7.23918814 BTC, 105.75351403 ETH, 636.11899592 AVAX, 14120.995091 USDT, 2,380,467,906.17 SHIB, and 319008151.01 PEPE. These funds were linked to fraudulent activities associated with a scam called Trade Propel, as outlined in an affidavit by Special Agent Katrina P. Caulfield of the U.S. Secret Service.
Victims were lured into the scam through a Facebook group named “Financial Independence Forum,” where they were persuaded to invest in what seemed to be a profitable cryptocurrency trading opportunity. One victim, referred to as Victim-1, transferred 1.33 BTC under the guidance of an individual using the alias “Tom Sheldon Haley.” Further investigation revealed that the Trade Propel website was a sham, falsely claiming ties to reputable financial institutions and flagged in multiple fraud reports.
The government alleges that the confiscated assets are proceeds of wire fraud and were used in money laundering activities. The funds were reportedly routed through various intermediary wallets before being deposited into a Binance account under the name of Avwerosuo Omokri, associated with a Nigerian passport.
The forfeiture filing aims to obtain a court order to officially seize the assets and distribute them in accordance with federal law. The court document affirms the existence of probable cause for the forfeiture of the Defendant Property, emphasizing the importance of dismantling fraudulent schemes that exploit cryptocurrency platforms.
This significant legal action underscores the U.S. government’s commitment to combating financial crimes in the digital asset space, seeking to protect investors and uphold the integrity of the cryptocurrency market. Stay tuned for updates on this evolving case as authorities continue to pursue justice in the realm of virtual currencies.