DOJ Recovers $7M from Crypto Scam – Here’s How Victims Can Claim Their Funds
Sohrab Khawas23 Mar 20252 min read
As cryptocurrency grows in popularity, so do scams targeting unsuspecting investors. Fraudsters create fake trading platforms, promise huge returns, and manipulate users into depositing funds—only to steal the money. Authorities worldwide are cracking down on these schemes, recovering stolen funds, and urging victims to come forward.
DOJ Recovers $7M From Crypto Scam
The U.S. Department of Justice (DOJ) is inviting victims of a global crypto scam to claim their share of $7 million in recovered funds. The scheme, which used fake trading platforms and shell companies, tricked investors into believing they were making profits—only to drain their funds through fraudulent tactics.
Meanwhile, scammers created websites mimicking legitimate crypto exchanges, luring victims with fake gains while secretly funneling money through over 75 bank accounts. When investors attempted to withdraw, they were pressured into sending more money under the pretense of paying taxes on their supposed profits. Eventually, the funds were laundered overseas.
In June 2023, the U.S. Secret Service seized a portion of the stolen money from a foreign bank account. A civil forfeiture case followed, leading to a settlement that allowed the DOJ to reclaim $7 million. Now, victims can submit claims to get their money back.
It’s Not New!
One Crypto User said wash trading and fake volume have always been a problem in crypto. While it’s good that the DOJ is taking action, they argue that $23 million is nothing compared to the bigger issue. Instead of relying on enforcement, they believe the real fix is designing markets that prevent manipulation from the start.
Another Crypto Scam Exposed—Court Orders $2.3M Restitution
In a separate case, a federal court ruled against Debiex, a fraudulent crypto trading platform, ordering it to return nearly $2.3 million to victims. The scheme convinced users to deposit funds into fake trading accounts, only to siphon off their money.
The U.S. Commodity Futures Trading Commission (CFTC) stated that Debiex never actually traded crypto on behalf of its users. Instead, it displayed fabricated trading activity to keep investors hooked. Alongside the restitution order, Debiex was slapped with a $221,466 civil monetary penalty and banned from CFTC-regulated markets.
Plus, authorities recovered $120,000 from a digital wallet linked to Zhāng Chéng Yáng, a money mule involved in the scam. However, the CFTC warns that restitution isn’t always guaranteed, as scammers often hide or spend stolen assets before authorities intervene.
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