US authorities to return $7 million to victims of fake cryptocurrency investment site

U.S. authorities plan to return $7 million to victims of a social media scam in which victims were tricked into sending money to a fake cryptocurrency investment platform.
After the U.S. Secret Service seized some of the stolen funds from overseas banks in 2023, it reportedly began civil forfeiture proceedings that ultimately allowed it to return $7 million to victims.
In a statement released on the 21st, the US Attorney's Office for the Eastern District of Virginia said scammers approached victims and gained their trust before launching fraudulent transactions on websites posing as legitimate cryptocurrency investment platforms.
Once victims made deposits, the funds were laundered through more than 75 bank accounts in the names of ghost companies before being sent overseas.
It was revealed that the funds were disguised in a "deceptive manner" to appear as domestic transfers, but in fact were transferred to banks outside the United States.
"The website in question promised victims substantial returns on their investment," the prosecutors said in a statement.
"When victims tried to withdraw their funds, the scammers would extort them into making additional deposits by demanding that they pay taxes," he said.
In 2023, the U.S. Secret Service seized some of the stolen funds from overseas banks and then filed a civil forfeiture lawsuit in U.S. federal court, initiating legal proceedings.
However, the overseas bank also claimed rights to the funds, and after negotiations between the bank and U.S. authorities, an agreement was ultimately reached to return $7 million of the seized funds to the victims.
US authorities advised victims to contact the Secret Service and begin the claims process to recover their losses.