The federal government has seized and forfeited approximately $1.18 million in cryptocurrency, which was recently liquidated into US dollars, tied to a real estate fraud scheme.
The case was launched with civil complaint in April 2023 by a real estate agent and resident of Richmond Hill, Georgia, who contacted the Savannah office of the US Secret Service regarding communication with a person claiming to be a potential homebuyer with an extensive financial background with cryptocurrency.
Using the information the fraudster gave to the real estate agent and the Internet Crime Complaint Center, the Secret Service identified another real estate agent in North Carolina who had more than $200,000 in cryptocurrency stolen by the same criminal organization. The North Carolina victim was persuaded to download a cryptocurrency application, which was a fake version of a real cryptocurrency exchange.
The Secret Service traced the cryptocurrency transactions and identified a larger money laundering operation involving more than $100 million laundered over a short period, leading to the seizure of over $1 million. In 2024, the property was forfeited through a federal civil forfeiture case in Savannah.
The Secret Service is continuing its investigation and is working to identify victims eligible for consideration for compensation with the forfeited funds.
“The Asset Forfeiture Unit of the US Attorney’s Office and United States Secret Service worked diligently to locate, seize, and forfeit these funds, and are now working to identify eligible victims who may be compensated with forfeited funds,” said Margaret E. Heap, US Attorney for the Southern District of Georgia. “This forfeiture is a testament to the drive and ingenuity of the investigative team, and the partnership between our office and the United States Secret Service.”
Too many of these scams abound…I am glad they got one!
I had two prospective clients contact me a few weeks ago trying to do the same thing. Buy properties from me using crypto. Wanted me to set up a crypto account and invest in it. They would help me invest and they would buy a few houses from me. One was in California and one was in New Hampshire. Should I report this?
I am a long time licensed real estate broker and also a financial planner currently licensed in insurance. As part of insurance licensing, we are required to take a course in recognizing money laundering, which is a HUGE industry. I took three. If that money was located, taxed and targeted to pay off the national debt, it could be repaid in very little time.