United States uses civil asset forfeiture to recover $1.9M for victim of cryptocurrency investment scheme

ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia, through civil asset forfeiture, has recovered and cleared title to $1,971,399.80 in investment fraud proceeds and property involved in money laundering. The United States is now in the process of returning that property to the victim.

According to court documents, scam perpetrators first sent an unsolicited text message to the victim about going to Central Park and then continued to engage in communications with the victim. The cryptocurrency investment scheme involved the perpetrators taking time to get to know the victim and earning their trust before encouraging the victim to “invest” in cryptocurrency using a spoofed investment website set up to mimic a legitimate cryptocurrency investment platform and funnel victim funds to the perpetrators. The site falsely represented to the victim that their “investments” were making sizeable gains. When the victim attempted to make withdrawals, however, the perpetrators coerced the victim to send more money, using tactics such as claiming the victim owed taxes on their “profits.” Ultimately, the perpetrators never let the victim withdraw any funds and simply stole the victim’s money.

After receiving the victim’s funds, the perpetrators laundered the victim’s funds by conducting a series of convoluted transactions and making quick swaps from one type of cryptocurrency to another.   

In December 2024, the FBI and Loudoun County Sheriff’s Office seized just under $2 million from three cryptocurrency wallets. The United States began a civil forfeiture action against the seized funds by publicly filing a civil forfeiture complaint in U.S. District Court. The seized funds have been ordered forfeited, allowing for the return of the funds to the victim.

Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Reid Davis, Special Agent in Charge of the FBI Washington Field Office's Criminal Division; and Michael L. Chapman, Loudoun County Sheriff, made the announcement.

The matter was handled by Assistant U.S. Attorney Annie Zanobini.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:25-cv-559.