US Files Forfeiture Action on $12M Funds Involved in Crypto Frauds

The U.S. Attorney’s Office filed forfeiture action against more than $12 Million in funds involved in cryptocurrency investment fraud and money laundering.

Written By:
Manmit Kahlon

Reviewed By:
Gopal Solanky

Us Files Forfeiture Action On $12M Funds Involved In Crypto Frauds

The United States Attorney’s Office filed a civil forfeiture complaint on Friday against more than $12 million in Tether (USDT) that was part of a plan to defraud people who wanted to invest in cryptocurrencies. The statement was announced by John A. Sarcone III, Acting United States Attorney, and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office for the Federal Bureau of Investigation (FBI), on September 9, 2025. 

According to the lawsuit, the FBI found 10 Mandarin-speaking women to be victims of a cryptocurrency investment scam scheme where they lost more than $10.3 million in total. The unknown criminals acquainted themselves with their victims by sending them texts unexpectedly. Then they persuaded them to spend substantial sums of money on a fraudulent website named ShakepayEX, which was crafted to mimic a well-known cryptocurrency exchange in Canada. 

The victims encountered numerous justifications and false demands when they attempted to retrieve their money. Law enforcement employed blockchain analysis and other investigative methods to figure out that the cryptocurrency that was supposed to be given up was connected to the fraud.

“Cryptocurrency investment scams are the latest vehicle for con artists from all over the world to victimize Americans right here in our backyards. But this civil action is the latest example that law enforcement can and will use all the tools at our disposal to ensure that those who abuse legitimate technology will not profit from their deviant conduct,” stated Attorney Sarcone. 

The FBI said that it is looking into the situation. The United States is represented by Joshua R. Rosenthal, an assistant U.S. attorney. “Cryptocurrency scams are one of the most prevalent and damaging fraud schemes the FBI investigates,” said FBI Special Agent in Charge Tremaroli. “They have a devastating financial impact on victims and cause a tremendous amount of emotional distress. This filing serves as a reminder the FBI will continue to work with our partners to use every resource available to identify these schemes, investigate the criminals perpetrating them, and seek justice and relief for the victims.”

Also Read: Asset Entities Merges with Strive to Launch $1.5B Bitcoin Treasury Plan


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Manmit Kaur Kahlon is a crypto journalist covering market updates, industry developments, and the politics shaping the digital asset space. With 2 years of experience in reporting and content writing, she specializes in simplifying complex trends and delivering timely insights for readers following the fast-evolving world of cryptocurrencies.
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Gopal Solanky is a Research Analyst and Writer with over 5 years of experience in DeFi, blockchain, crypto, IT, and financial markets. With a Bachelor's in Computer Applications, he brings a strong technical foundation to his analysis and reporting. Gopal focuses on breaking down complex topics for both seasoned investors and curious readers. His work has been referenced by publications like Business Insider and Vulture.com, highlighting his contributions to industry stories around topics like Huwak Tuah Memecoin and the FTX collapse.