Breaking: United States Seeks To Recover Stolen Crypto Assets From Binance

According to the official statement released, the investigation into this particular BEC scheme commenced in March 2022, when a Massachusetts business fell victim to a fraudulent email. The scammers successfully tricked the company into wiring a substantial sum of $898,342 from their local bank account to an account opened in California.

Stolen Funds Trail End At Binance

The illicitly obtained funds were subsequently traced to another bank account and then converted into Bitcoin on a cryptocurrency exchange. To further obscure the money trail, the funds were transferred through multiple intermediary wallet addresses, following a pattern commonly associated with money laundering transactions. Ultimately, a portion of the funds was traced to accounts located at the Binance exchange, where they were seized in August and September 2022.

Under federal law, it is considered a violation to employ wire communications as part of a scheme to defraud or obtain money or property through false or fraudulent means. The complaint lodged by the US Attorney’s Office asserts that the seized currency represents both the proceeds of the wire fraud and property involved in money laundering.

In the wake of such crypto news, crypto phishing scams and BEC fraud have become increasingly prevalent in the United States, causing significant financial losses for individuals and businesses alike. Civil forfeiture actions, like the one taken by the US Attorney’s Office, aim to disrupt criminal networks and provide restitution to the victims.

Also Read: Coinbase Files Mandamus Petition Against SEC For Regulatory Clarity

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