U.S. Attorney’s Office forfeits cryptocurrency and helps victims of business email compromise fraud scheme

Press Release

Fraudsters infiltrated systems to send wiring instructions stealing funds intended to pay-off mortgages or other real estate transactions

Seattle - Quick work by the U.S. Secret Service and the Asset Forfeiture Unit of the U.S. Attorney's Office means victims of a business email compromise scheme may be made whole after losing millions of dollars through fraud, announced U.S. Attorney Tessa M. Gorman. In December 2023, a company involved in real estate transactions reported that their system had been compromised and fraudsters obtained more than $1 million by submitting false wire transfer instructions.

Investigation revealed that at least ten other businesses or individuals had also been victimized, in amounts ranging from $75,000 to $425,000. The fraud proceeds were laundered through multiple bank accounts, some of which were held by money mules, before being consolidated into a single cryptocurrency wallet, controlled by fraudsters in Nigeria.

Acting quickly, law enforcement seized approximately 32.68 Bitcoin, then worth about $900,000, from the fraudsters' cryptocurrency wallet. The U.S. Attorney's Office then filed a civil forfeiture case against the seized Bitcoin, the value of which has more than tripled since the time of seizure. Due to the rising price of Bitcoin, it is possible that each of the ten victims who have filed claims will be made whole.

"I commend the quick work by law enforcement and the Asset Forfeiture Unit who moved to seize this Bitcoin and are working diligently to make these victims whole," said U.S. Attorney Gorman. "Civil forfeiture is an important tool that we can use to help victims, even before the bad actors themselves have been arrested."

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Updated December 16, 2024