United States Files Forfeiture Action Against $1.2 Million Involved in Cryptocurrency Investment Fraud and Money Laundering

KANSAS CITY, Mo. – R. Matthew Price, United States Attorney for the Western District of Missouri, announced today that a civil forfeiture complaint has been filed in federal court against approximately $1.2 million in digital currency seized by the government in connection to a fraudulent online investment scheme.

According to the complaint, the unidentified perpetrators identified potential victims using a “wrong number” scam, in which they sent unsolicited texts and social media messages to random individuals throughout the United States. Once the perpetrators developed a relationship, they introduced the victims to online investment opportunities that they promised would provide huge returns.

The victims were persuaded to purchase cryptocurrency and transfer it to fake investment platforms called TMGM and NEEX. When the victims tried to withdraw their funds, they were met with various excuses and fraudulent demands. Law enforcement used blockchain analysis and other investigative techniques to determine that the cryptocurrency sought to be forfeited was tied to the scheme.

The civil forfeiture complaint is merely a set of allegations. It is the government’s burden to prove forfeitability in a civil forfeiture proceeding.

The FBI is investigating the case. Assistant U.S. Attorney John Constance is representing the United States.

Members of the public who believe they are victims of cryptocurrency investment fraud and other cyber-enabled crime should contact the FBI Internet Crime Complaint Center at www.ic3.gov.