The U.S Justice Department recently made a significant move against fraudulent activities in the cryptocurrency space, seizing $112 million in digital currencies connected to numerous crypto-related scams. The six digital currency accounts were believed to be associated with laundering money gained from investment frauds. These schemes worked by creating long-term relationships with victims and luring them to invest in fake trading platforms.

In 2022, the FBI reported that investment frauds involving cryptocurrencies was the most significant type of crime with a volume of $3.3 billion. It is known that targets were contacted through social media platforms, online messaging services, dating websites and even phone calls and messages.

The Justice Department revealed their intention to return the confiscated digital assets to the victims. Alongside dismantling those operations, they intend to increase public awareness of the risks that come with partaking in suspicious investments. This comes as it is suspected that the majority of those that have become victims, have failed to follow the proper precautions before investing.

Cryptocurrency scams have become increasingly rampant with fraudsters having developed sophisticated methods to target investors. It is therefore of great importance that investors stay informed, vigilant and do their own research before investing. Government entities such as the DOJ provide resources to ensure that individuals can stay protected. In addition, people should keep an eye on the latest news related to the cryptocurrecy space that could help them be aware of criminal activities such as those involving nefarious investment schemes.



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