US authorities have successfully recovered $7 million linked to a cryptocurrency investment scam and will now begin returning the stolen funds to the victims.

The announcement came from the US Attorney’s Office for the Eastern District of Virginia, which confirmed the use of civil asset forfeiture to secure the money. The scheme, described in court filings, involved cybercriminals who used social engineering tactics to win victims’ trust before leading them to invest through fake crypto platforms.

These websites, designed to look like legitimate investment portals, showed victims false profits and manipulated them into sending even more money. When victims attempted to cash out, they were hit with bogus tax demands or withdrawal fees, all part of the deception.

Behind the scenes, the perpetrators funneled the money through a maze of over 75 bank accounts registered to shell companies. Ultimately, the funds were transferred out of the U.S., with wire transfers falsely labeled as domestic transactions to avoid detection.

In mid-2023, the US Secret Service tracked and seized a portion of the illicit funds from an account held by a foreign bank. A civil forfeiture complaint was then filed in federal court, triggering a legal process that included public notices and direct outreach to any party with a potential claim.

The foreign bank contested the seizure but later reached a settlement with the US government. Under the agreement, $7 million of the seized funds were forfeited, clearing the way for victims to request reimbursement for their losses.

“This outcome reflects our commitment to restoring stolen funds to victims and holding fraudsters accountable, no matter where they operate,” said U.S. Attorney Erik S. Siebert.

Matthew McCool, Special Agent in Charge of the Secret Service’s Washington Field Office, emphasized the importance of fighting cyber-enabled fraud: “This case is a reminder that even sophisticated financial crimes leave trails — and we will follow them to recover what’s been taken.”

Victims affected by the scam will soon be invited to submit formal petitions to claim their share of the recovered funds.