The United States Attorney’s Office in Boston has initiated a civil forfeiture action to recover various cryptocurrencies, including Bitcoin, Tether, and Ethereum, allegedly obtained through an online investment fraud scheme. The total estimated value of the seized assets exceeds $170,579.
The investigation began in March 2024 after a Massachusetts resident fell victim to what is known as a "pig-butchering" scheme. These schemes involve scammers building trust with victims online before convincing them to invest in fraudulent cryptocurrency platforms. Victims often make additional payments without realizing they are being defrauded.
Court documents reveal that the Massachusetts resident became involved after joining a Facebook group called “Financial Independence Forum,” which claimed to offer reliable investment advice for financial independence and early retirement. The victim was persuaded by supposed profit gains and messages claiming investment expertise to transfer funds to what authorities believe was a fraudulent trading platform.
During the course of the investigation, three more victims across the United States were identified as having sent funds to the same suspect platform. Some of these funds were traced back to a cryptocurrency account that was seized in October 2024.
Using wire communications for fraudulent schemes or conducting transactions designed to hide criminal proceeds violates federal law. A civil forfeiture action enables third parties to assert claims on property before it can be forfeited and returned to victims.
This case is one among several actions taken by the U.S. Attorney’s Office targeting fraud schemes involving cryptocurrencies aimed at Massachusetts residents.
Victims of cybercrime, including cryptocurrency scams and other forms of online fraud, are encouraged to contact USAMA.CyberTip@usdoj.gov for assistance.
The announcement was made by United States Attorney Leah B. Foley and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service's Boston Field Office. Assistant U.S. Attorney Carol E. Head is leading the prosecution of this civil forfeiture action.
It should be noted that all details within the civil forfeiture complaint are allegations at this stage, with no corresponding criminal charges filed yet by the United States Attorney’s Office.