Agencies Recover Nearly $400,000 for Victim of Cryptocurrency Scam
Wisconsin has experienced an unprecedented rise in cryptocurrency scams in recent years. Criminals target vulnerable residents with increasingly sophisticated schemes that persuade victims to withdraw their savings from FDIC-insured banks and deposit the money into cryptocurrency ATMs. Once victims complete these transactions, the money can effectively disappear. Criminals favor cryptocurrency because it allows them to conceal their identities and transfer funds more quickly than they can transfer U.S. currency. Unlike conventional bank accounts, cryptocurrency is not insured by the federal government, leaving victims with limited recourse.
Recently, Assistant District Attorney Thomas Binger of the Walworth County District Attorney’s Office recovered a significant amount of money for one victim with the assistance of the Walworth County Sheriff’s Office, the Wisconsin Attorney General’s Office, the Wisconsin Department of Financial Institutions, and Detective Scott Simons of the Greenfield Police Department. The agencies traced the victim’s funds as they were converted to cryptocurrency and transferred through shadowy crypto networks to a “wallet” the scammer created. The agencies then worked with Circle Internet Financial, the company that issued the cryptocurrency, to freeze and forfeit nearly $400,000 in stolen funds. Circle subsequently agreed to reimburse the victim for the loss.
Not all victims receive their money back. Because the law is still adapting to this technology, the Walworth County District Attorney’s Office encourages residents to remain skeptical of offers that seem too good to be true. No reputable bank, utility, or government agency will demand payment in cryptocurrency. Anyone who believes a scammer is targeting them or someone they know should contact law enforcement immediately and report cybercrimes to the Internet Crime Complaint Center at ic3.gov.
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