Unmasking Cryptocurrency Confiscations: FBI Seizes $1.7 Million in Digital Assets and Warns Against Crypto Scams

An official report released by the Federal Bureau of Investigation (FBI) of the United States discloses that approximately $1.7 million worth of digital assets were confiscated by the law enforcement agency between March and May.

As detailed in the report, the FBI took possession of $147,000 in Bitcoin (BTC) with a corresponding drop of $29,158, $800,000 in Ether (ETH) with a corresponding drop of $1,824, $307,000 in Tether (USDT) with a corresponding drop of $1.00, 469,000 in DAI (DAI) with a corresponding drop of $1.00, and $20,000 in Monero (XMR) with a corresponding drop of $156. These assets were seized from various sources, including Binance exchange wallets.

An extract taken from the FBI document made public on August 16, 2023. Reference: FBI

The largest amount of digital assets seized, totaling 428.5 ETH, occurred in the Eastern District of Virginia. One of the seized Ether amounts was valued at approximately $463,000.

The FBI emphasized within the report that the confiscation of these assets was a result of various breaches of federal regulations. The FBI stated:

"The Federal Bureau of Investigation (FBI) hereby informs that the below-mentioned property was seized for federal forfeiture due to violations of federal law."

In addition to cryptocurrencies, the FBI also documented the confiscation of several items, including United States Dollars (USD) from bank accounts, luxury sports cars, high-end bags, clothing, and footwear.

Meanwhile, the FBI has consistently alerted the cryptocurrency community about the presence of scammers masquerading as legitimate individuals within the non-fungible token (NFT) space. On August 6th, the FBI cautioned about malicious actors who create a "sense of urgency" and direct victims to fraudulent websites in order to steal their assets. The FBI highlighted that these criminals either hack verified social accounts or establish new ones that closely resemble official accounts to engage in theft and fraud.

Beyond phishing schemes and social media takeovers, earlier this year, the FBI issued a warning about fake cryptocurrency job advertisements. On May 23rd, the agency advised U.S. citizens to be cautious of deceptive job ads linked to human trafficking, where victims are coerced into participating in cryptocurrency investment fraud.