FBI Forfeitures Include Crypto Assets Seized From Binance

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    • Largest crypto-related sum reached $469K in stablecoin DAI.
    • FBI: only scammers ask for payments in crypto and promise profits.

    Latest public filing by the Federal Bureau of Investigation (FBI), the U.S. domestic intelligence intelligence agency, reveals cryptocurrency forfeitures across multiple states. Seizure was done over the course of three months. The document showcases other forfeitures in physical assets.

    FBI Seized DAI the Most Among Other Crypto Assets

    According to the paper released today, nearly $2 Million worth of cryptocurrencies were seized. Digital assets include Bitcoin (BTC), Ethereum (ETH), Dai (DAI) and more. Largest sum crypto-related sum reached $469K in stablecoin DAI seized by the agency on April 27, 2023.

    Furthermore, the agency reported forfeiting crypto assets on six instances from Binance, the largest cryptocurrency exchange, accounts during May. Other than digital assets, the paper also mentions forfeiture of assets including arms, automobiles, jewellery and more.

    Bleeping Computer, a leading technology news provider, reported the FBI issued a warning for crypto recovery scams recently. The document highlights an increase in such activities. Malicious actors are attracting victims in the name of recovery to exploit them again.

    Ambush Predators, Waiting To Attack

    Lawrence Abrams, founder of Bleeping Computer, tweeted a decoy post asking for help to recover lost crypto assets. Unsurprisingly, a barrage of crypto scammers and bots offered him ‘support.’ As per the FBI, once these bad actors successfully lead the victim to their trap, they leave them hanging out to dry.

    The Federal Trade Commission (FTC), an independent U.S. government agency, deem crypto market as risky primarily due to no government backing and extreme volatility in the sector. Additionally, the agency also highlights other tactics these malevolent actors use.

    Only fraudsters ask for payments in crypto, and guarantee investors a profit, the agency says. Moreover, FTC also mentions investment scams are more common in the cryptocurrency market. Social media websites are a preferred choice for scammers to defraud potential victims.

    Regulators are still in a tug-of-war with the crypto sector. Democrat Maxine Waters recently released a statement regarding PayPal’s stablecoin, PYUSD. She is not fascinated by the company’s latest product considering there is no prompt regulatory framework regarding these assets.

    Another government agency, the Commodity Futures and Trading Commission (CFTC), recently charged four individuals for soliciting crypto funds. CFTC froze assets of the accused including Rene Larrade, Juan Pablo Valcarce, Brian Early and Alisha Ann.

    News website Mashable reported in March 2023, citing FBI’s annual internet crime report, that users lost over $10 Billion in crypto and other assets last year. The report also mentions that senior citizens lost $3 Billion to scammers. CertiK’s Web3 Security report says crypto losses rose by 189% in 2022 over 2021.


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    Anurag Batham
    Anurag Batham is a journalist and research analyst at CryptoSunday. He has covered blockchain, crypto, metaverse and more since 2021 and holds a keen interest in global economy and climate change with a passion to deliver useful information to the readers.