The U.S. government has seized digital currency worth over $450,000 from accounts linked to a Chinese man who is facing fraud charges related to running a cryptocurrency-based ponzi scheme.
The Justice Department announced that the funds were seized from four wallets associated with Jianfu Cui, a Chinese national living in Canada who is accused of running the “100 Coin” cryptocurrency pyramid scheme.
According to the indictment, Cui enticed investors with false promises that he and his business associates would invest the money on their behalf and return high profits. Instead, he allegedly diverted the funds to himself and to co-conspirators and used the money for personal purposes. He allegedly lied to investors about how their money would be used, the risks associated with the investment, and the safety of their funds.
The government identified four wallets associated with Cui and his cryptocurrency transaction network, which were holding a total of $455,000 in digital currency. The Department of Justice has now seized these funds.
The government’s action highlights the increasing use of digital asset tracing techniques to combat cryptocurrency crime. As digital currency becomes more widespread, enforcement agencies have been leveraging tools such as blockchain analysis and asset tracing to uncover fraud and impose civil or criminal sanctions.
In this instance, it appears the government was able to identify the wallets associated with Cui, trace the movement of the illicit funds, and seize them successfully.
Source: https://cointelegraph.com/news/us-seizes-half-a-million-dollars-in-digital-currency-linked-to-chinese-man-involved-in-crypto-fraud
