U.S. ATTORNEY HEAP ANNOUNCES FORFEITURE OF OVER $1 MILLION IN CRYPTOCURRENCY AS A RESULT OF A FRAUD AND MONEY LAUNDERING INVESTIGATION

SAVANNAH, GA:  Margaret E. Heap, United States Attorney for the Southern District of Georgia, today announced that, through a civil asset forfeiture action, the government has seized and forfeited approximately $1,185,922.91 of cryptocurrency, which was recently liquidated into U.S. currency, as a result of a financial investigation by the U.S. Attorney’s Office Asset Forfeiture Unit and United States Secret Service (USSS).

“The Asset Forfeiture Unit of the U.S. Attorney’s Office and United States Secret Service worked diligently to locate, seize, and forfeit these funds, and are now working to identify eligible victims who may be compensated with forfeited funds,” said U.S. Attorney Heap. “This forfeiture is a testament to the drive and ingenuity of the investigative team, and the partnership between our office and the United States Secret Service.”

The case was opened following a report of a sophisticated fraud attempted against a real estate agent in Richmond Hill, Georgia, near Savannah.  The Secret Service had previously spoken with realtors in the area about fraud targeting the real estate industry and received the report based on their outreach. The investigation exposed a global fraud and money laundering operation and resulted in the disruption of an international criminal organization.  

“With the continued evolution of cryptocurrency fraud, our outreach efforts are crucial to preventing unsuspecting Americans from falling victim to these crimes,” said USSS Savannah Resident Office Agent in Charge James Reno. “It was through these outreach efforts that the fraud in this case was identified, and we remain committed to educating the public and working with the U.S. Attorney’s Office to bring perpetrators of these crimes to justice.”

As set forth in the civil complaint, in April 2023, a real estate agent and resident of Richmond Hill, Georgia, contacted the USSS Savannah Resident Office regarding communication with a person claiming to be a potential home buyer.  The purported home buyer made out to have an extensive financial background with cryptocurrency.  The real estate agent recognized the hallmarks of fraud and contacted the Secret Service.  Using the information the fraudster gave to the real estate agent and the Internet Crime Complaint Center referenced below, the Secret Service identified another real estate agent in North Carolina who had more than $200,000 in cryptocurrency stolen by the same criminal organization.  The North Carolina victim was persuaded to download a cryptocurrency application, which was a fake version of a real cryptocurrency exchange.  The Secret Service traced the cryptocurrency transactions and identified a larger money laundering operation involving more than $100 million laundered over a short period, leading to the United States seizing over $1 million.

In 2024, the property was forfeited through a federal civil forfeiture case in Savannah. The Secret Service is continuing its investigation and is working to identify victims eligible for consideration for compensation with the forfeited funds.  

The Internet Crime Complaint Center, is run by the FBI and serves as the country’s hub for reporting cybercrime.  Visit www.ic3.gov to report a crime, and for updated information and other cyber fraud schemes.

This case was investigated by the United States Secret Service.  The United States was represented by Senior Litigation Counsel J. Bishop Ravenel.