The U.S. Department of Justice said on July 31 that it has filed a civil forfeiture action to recover 47,461.73111 USDT, worth about $47,000, in connection with a crypto ATM scam case involving five victims. Prosecutors said the scheme involved scammers persuading victims to withdraw cash from their banks and deposit the money through cryptocurrency ATMs. In one case, a resident of Ware, Massachusetts, was targeted after a computer pop-up directed the person to contact customer support. The scammer allegedly claimed the victim’s bank account had been compromised and instructed the victim to move funds into supposed government safekeeping. Investigators later traced some of the money to the same cryptocurrency wallet and linked it to four other victims in similar scams. The disclosure came as lawmakers are also weighing tighter rules for the sector. On June 11, the U.S. House introduced the Stop Crypto ATM Scams Act, which would impose a $2,000 daily transaction cap and a $10,000 total deposit cap for new customers during their first 14 days, while also requiring fraud warnings, refund arrangements, and stronger anti-money laundering and recordkeeping obligations for operators.
The U.S. Department of Justice (DOJ) said on July 31 that it is seeking the civil forfeiture of 47,461.73111 USDT, worth about $47,000, in a crypto ATM scam case tied to five victims.
Prosecutors say victims were told to withdraw cash and feed it into crypto ATMs
According to prosecutors, the scammers directed victims to withdraw money from their bank accounts and then deposit the cash through cryptocurrency ATMs.
One of the victims was a resident of Ware, Massachusetts, who was targeted after a computer pop-up told the person to contact customer support. The caller then allegedly said the victim’s bank account had been compromised and instructed the victim to transfer funds into government “safekeeping.”
Investigators traced part of the funds to the same wallet
Investigators later tracked some of the money to a single cryptocurrency wallet and linked that wallet to four other victims in similar schemes.
House bill would tighten rules for crypto ATM operators
Separately, the U.S. House introduced the Stop Crypto ATM Scams Act on June 11. The bill would set a $2,000 daily transaction cap and a $10,000 total deposit cap for new customers during their first 14 days.
It would also require cryptocurrency ATM operators to provide fraud warnings, refund arrangements, and stronger anti-money laundering and recordkeeping measures.
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