Key Highlights
- Around $516,332.72 in crypto was seized by the U.S. Secret Service in an investigation tied to fraud networks linked to Nigeria.
- Scammers used fake emails posing as business partners and attorneys to deceive victims into sending large payments.
- Investigators traced accounts and wallet activity connected to individuals and operations linked to Nigeria.
The U.S. Secret Service has seized nearly $516,332.72 in cryptocurrency tied to a business email fraud network linked to Nigeria, according to local outlet People Gazette.
According to court documents, the agency is now asking a federal court in Texas to officially take control of the assets through a legal forfeiture process.
How the investigation started
Court documents filed in the United States District Court for the Eastern District of Texas showed that investigators seized about $516,332 from three crypto wallets around March 10, 2026, in Tyler, Texas. One wallet reportedly contained about $201,801, another held around $15,200, while a third wallet had more than $299,000 in USDT.
The investigation reportedly started in August 2024 after several victims reported losing money in business email compromise scams, also known as BEC scams.
These scams usually involve fraudsters pretending to be trusted business partners, lawyers, or company representatives through fake emails, which they use to trick victims into sending money to bank accounts controlled by them.
How the fake email trap works
Secret Service Special Agent Brad Schley reportedly explained how the fraud operation allegedly worked. He said victims first sent money to local bank accounts inside the United States. The money was then moved through several other accounts to make it harder to track before it was finally converted into cryptocurrency.
Meanwhile, as reported by a local report, one of the cases involved Lapetco, Inc., a company that reportedly lost around $600,000 during a business transaction with Pontem Energy Partners, LP.
According to investigators, the parties involved had already completed two successful transactions before the fraud took place. On July 31, 2024, they received a fake email that appeared to come from an attorney connected to the deal. The scammers reportedly changed the email domain slightly and instructed the company to send money to a different Citizens Bank account controlled by the fraud network.
Authorities said investigators later traced the stolen funds through multiple accounts before the money was converted into cryptocurrency. Secret Service officers also obtained records linked to six Kraken exchange accounts through subpoenas. People Gazette reported that many of the accounts allegedly used fake names and fraudulent driver’s licenses.
Another victim identified only as R.I. reportedly lost nearly $3 million while trying to distribute inheritance funds as a family executor. Investigators said more than $1.3 million from that case moved through the laundering network before being converted into USDT.
The Secret Service said blockchain analytics helped identify the wallets connected to the fraud operation. Investigators later contacted Tether, which froze the accounts linked to the funds.
Nigeria’s crackdown against crypto fraud
Crypto scams linked to Nigeria are not a thing of today. Even the Nigerian government itself is actively taking action in efforts to stop financial crimes tied to digital assets.
Early this year, Nigeria’s Economic and Financial Crimes Commission (EFCC) uncovered a major fraud case involving a commercial bank, several fintech firms, and microfinance banks accused of allowing suspicious crypto transactions to pass through their systems without proper checks.
Investigators said more than ₦162 billion in crypto-related transactions moved through the accounts, while one individual allegedly operated 960 bank accounts linked to fraudulent activities.
The latest seizure shows that both Nigerian and U.S. authorities are now working to crack down on crypto-related fraud networks as scammers continue using digital assets and fake identities to move stolen funds across borders.
Also Read: CBN Starts Pilot Program to Watch Crypto Firms in Nigeria
