💰 US Government Seeks Forfeiture of Crypto from Binance Account Amid Fraud Allegations
🚨 The U.S. government has filed a civil forfeiture action against cryptocurrency holdings from a Binance account, claiming they are linked to wire fraud and money laundering. This case, submitted to the U.S. District Court for the District of Massachusetts on February 19, involves digital assets seized in October 2024. The complaint lists various cryptocurrencies, including 7.239 BTC, 105.753 ETH, and over 2.3 billion SHIB, associated with User ID XXXXX3280.
🕵️♀️ According to Special Agent Katrina P. Caulfield from the U.S. Secret Service, these funds are linked to a fraudulent investment scheme called Trade Propel. Victims were recruited through a Facebook group named “Financial Independence Forum,” where they were persuaded to invest in a seemingly profitable cryptocurrency trading opportunity. One victim, referred to as Victim-1, transferred 1.33 BTC based on advice from someone using the alias “Tom Sheldon Haley.” Investigations revealed that the Trade Propel website was a scam, misrepresenting its affiliation with legitimate financial institutions and flagged in several fraud reports.
⚖️ The government claims that the seized assets are proceeds from wire fraud and were used in money laundering activities. The funds were transferred through multiple intermediary wallets before being deposited into the Binance account registered to Avwerosuo Omokri, who is linked to a Nigerian passport. The forfeiture filing requests a court order to officially seize the assets and allocate them according to federal law, emphasizing the need to dismantle fraudulent schemes that exploit cryptocurrency platforms. The court document states:
This court has found probable cause for forfeiture of the Defendant Property.