The increase in the adoption of Bitcoin and cryptocurrencies has brought with it an increase in fraudulent events.
As scam incidents began to decline in the first quarter of 2023, the US Government took action to buy cryptocurrencies linked to a scam in March 2022.
In March 2022, the U.S. government filed for confiscation of cryptocurrencies allegedly to be the proceeds of a commercial email interception (BEC) scam targeting a Massachusetts business, according to an official statement.
The government's request includes the granting of cryptocurrencies in seven accounts on Binance, the world's largest cryptocurrency exchange.
Among the requested cryptocurrencies, seized cryptocurrencies include Bitcoin (BTC), Tether (USDT), APEcoin (APE), JasmyCoin (JASMY), Origin Protocol (OGN), Shiba Inu (SHIB), XEC (eCash), TLM and Binance Coin (BNB) is included.
What Happened?
In March 2022, scammers targeted a business in Massachusetts. The scammers scammed the business owner with a fake email and wired $898,342 from his Massachusetts bank account to a California bank account.
After this scam, a federal investigation began to find the culprits and the money.
The proceeds from this scam were traced back to another bank account and then the conversion of the funds to Bitcoin.
Funds in the form of cryptocurrencies were then transferred to a series of intermediary crypto addresses, similar to the tactics used in money laundering operations.
The US government eventually seized those cryptos or things of equivalent value, finding that some of the funds were in accounts at Binance in August and September 2022.
Now, the US government wants the confiscation of cryptocurrencies in accounts at Binance.