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US Government Seizes Cryptocurrency Linked to Business Email Compromise Fraud Scheme on Binance Exchange

The US Attorney's Office has initiated a civil forfeiture action to recover cryptocurrency proceeds related to a business email compromise (BEC) fraud scheme that targeted a Massachusetts-based company. The government is focusing on seizing crypto assets from seven accounts held at Binance, a popular cryptocurrency exchange. The United States has seen a significant increase in crypto-related phishing scams, which have become a major concern for individuals, businesses, and law enforcement agencies. In addition, pig butchering schemes have emerged, targeting individuals or businesses involved in the livestock industry, particularly pig farming. The government aims to seize and forfeit cryptocurrency confiscated from several accounts held at Binance, including Bitcoin, Tether, ApeCoin, JASMY, Origin Protocol, Shiba Inu, eCash, TLM, and Binance coin. The scammers used effective tactics to deceive the company into transferring a significant amount from their local bank account to another account, which was then converted to Bitcoin on a cryptocurrency exchange. The funds were routed through various crypto addresses, aligning with techniques commonly observed in money laundering transactions. The authorities successfully seized these funds from Binance in August and September 2022, despite the money being routed through numerous intermediary wallet addresses. The complaint presented by the US Attorney's Office firmly asserts that the seized cryptocurrency represents the ill-gotten proceeds from the wire fraud and serves as evidence of property involved in money laundering. Any claims made by third parties regarding the property must be examined and resolved before the property can be forfeited to the United States and returned to the victims.

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