Federal prosecutors seek forfeiture of cryptocurrency tied to scam on Massachusetts victim
The U.S. attorney's office in Boston says scammers posing as Coinbase used fraudulent texts to get a victim's login details and drain the account. It is trying to recover Tether now valued at about $47,000.
Federal prosecutors in Boston have filed a civil forfeiture action seeking to recover 110,270 Tether, a cryptocurrency, that they say came from a fraud scheme targeting a Massachusetts victim, the U.S. attorney's office for the District of Massachusetts said Monday.
The cryptocurrency has an estimated value of about $47,000, prosecutors said.
According to the complaint, the victim was exchanging emails with Coinbase, a cryptocurrency exchange, when they received fraudulent text messages that claimed to come from Coinbase. Prosecutors said the texts led the victim to share a login, password and other information that gave access to the victim's Coinbase account. Money was then taken from the account without the victim's consent, the complaint says.
Some of the money was traced to an account at another cryptocurrency exchange and seized in August, prosecutors said.
The office described the case as an account takeover scheme, in which criminals gain unauthorized access to a victim's online accounts to steal money or information.
A civil forfeiture action allows third parties to make claims to the property, and those claims must be resolved before it can be forfeited to the United States and returned to victims, prosecutors said. The details in the complaint are allegations.
The release did not identify anyone accused of carrying out the scheme. U.S. Attorney Leah B. Foley's office said it is one of several civil forfeiture actions it has filed to recover cryptocurrency traced to fraud schemes targeting Massachusetts victims. The FBI's Boston field office joined in the announcement.
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