The United States government is taking action to return $7 million to victims of a social engineering scam that targeted individuals looking to invest in cryptocurrency. The scam involved fraudsters contacting victims and gaining their trust before directing them to fake crypto investment websites. These websites were designed to look legitimate, but were actually used to funnel funds through multiple bank accounts and then transfer them abroad.

The fraudsters would deceive victims by falsely claiming their investments were making significant gains. When victims attempted to withdraw their funds, the scammers would coerce them into sending more money by claiming they owed taxes on their profits. This elaborate scheme involved over 75 bank accounts and multiple shell companies to hide the true destination of the funds.

The United States Secret Service was able to seize some of the stolen funds from a foreign bank in 2023 and began a civil forfeiture action. After a lengthy legal battle, the US authorities reached a settlement agreement for $7 million of the seized funds. However, the victims of this scam are still urged to contact the Secret Service to petition for the recovery of their losses.

This is just one example of the growing trend of professionalized cyber syndicates targeting the cryptocurrency industry. In its 2025 Crypto Crime Report, blockchain analytics firm Chainalysis noted that crypto crime has become more sophisticated and organized. Other recent scams include SMS messages posing as legitimate crypto exchanges and a new form of crypto-stealing malware hidden in a “cracked” version of a popular trading platform.

As the crypto industry continues to grow, it is important for individuals to be vigilant and cautious when investing. Always do thorough research and only use trusted and verified platforms. If you believe you have been a victim of a crypto scam, report it to the proper authorities immediately. Let’s work together to combat these fraudulent activities and protect the integrity of the crypto market.