US to Return $7M to Victims of ‘Spoofed’ Crypto Investment Scam

The United States authorities are working to return $7 million in stolen funds to victims of a social engineering scam that tricked individuals into sending money to fraudulent cryptocurrency investment websites. The scam involved sophisticated tactics that led victims to believe they were making profitable investments in legitimate crypto platforms, only to find their funds stolen.

According to a statement from Virginia’s Eastern District US Attorney’s Office on March 21, the scam involved perpetrators gaining the trust of their victims before directing them to fake crypto investment platforms. These fraudulent websites were designed to resemble legitimate platforms, tricking users into depositing funds.

Once the victims transferred their money, the funds were funneled through over 75 bank accounts under the names of shell companies. The money was then sent abroad, with the transfers deceptively labeled as domestic wires despite being routed to banks outside the US.

The scam’s perpetrators falsely claimed that the victims’ investments were yielding substantial returns. However, when victims attempted to withdraw their funds, they were met with further coercion. The fraudsters pressured them to send additional money by falsely claiming the victims owed taxes on their supposed profits.

Secret Service Seizes Stolen Funds, Legal Action Ensues

In 2023, the US Secret Service seized part of the stolen funds from a foreign bank and initiated a civil forfeiture action. The case was brought before a US District Court, but the bank holding the funds also filed a claim against the money. After legal negotiations, US authorities reached a settlement, agreeing to return $7 million of the seized funds to the victims.

Victims of the scam have been encouraged to reach out to the US Secret Service to file claims and petition for the recovery of their losses. More information on how to file a claim can be found on the Secret Service’s official website.

Crypto Crime Enters a New Era of Professionalization

The case highlights the growing sophistication of crypto-related crimes. In its 2025 Crypto Crime Report, blockchain analytics firm Chainalysis noted that cryptocurrency crime has become increasingly professionalized, with cybercriminal syndicates now driving many of the scams. This new era of organized crime has seen the rise of more efficient and coordinated efforts to defraud crypto users.

Authorities worldwide are also responding to the rising wave of crypto scams. On March 21, Australian Federal Police issued a warning to 130 individuals who had fallen victim to a message scam that spoofed the sender ID of legitimate crypto exchanges, including Binance. These scams tricked users into providing sensitive information by posing as trusted platforms.

In a similar case on March 14, scam messages on X (formerly Twitter) spoofed exchanges like Coinbase and Gemini, attempting to convince users to set up new wallets using pre-generated recovery phrases controlled by the fraudsters.

Rising Threat of Crypto Malware and New Scams

Cybersecurity threats in the crypto space are also evolving. On March 18, cybersecurity firm Malwarebytes issued a warning about a new strain of crypto-stealing malware hidden inside a "cracked" version of TradingView Premium, which had been distributed to unsuspecting users.

Furthermore, on March 17, Microsoft’s Incident Response Team revealed that a new remote access trojan (RAT) was being used by cybercriminals to target cryptocurrency stored in over 20 wallet extensions for the Google Chrome browser. This malware allows scammers to gain unauthorized access to users' wallets, potentially leading to further theft of crypto assets.

Conclusion

The $7 million return to victims of the spoofed crypto investment scam is a reminder of the growing sophistication of cybercrime in the crypto space. As fraudsters employ increasingly advanced methods to deceive investors, both law enforcement and cybersecurity firms are ramping up efforts to protect consumers. With the rise of professionalized cyber syndicates and new malware threats, it’s clear that crypto users must remain vigilant against the ever-evolving landscape of online fraud. To stay informed about the latest scams and learn how to protect your assets, be sure to follow the latest reports from agencies like Chainalysis and Malwarebytes.