U.S. Seeks Forfeiture of Crypto Assets Tied to Wire Fraud Scheme

The U.S. government has initiated a civil forfeiture action to seize cryptocurrency assets linked to a wire fraud and money laundering case. The seized digital assets, confiscated from a Binance account in October 2024, are now under legal claim by federal authorities.

Filed on February 19 in the U.S. District Court for the District of Massachusetts, the case involves various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Tether (USDT), Shiba Inu (SHIB), and Pepe (PEPE). Authorities seized 7.23 BTC, 105.75 ETH, 636.11 AVAX, 14,120.99 USDT, 2.38 billion SHIB, and 319 million PEPE from a Binance account registered to Avwerosuo Omokri, who holds a Nigerian passport.

According to Special Agent Katrina P. Caulfield of the U.S. Secret Service, the assets were traced back to Trade Propel, a fraudulent investment platform that operated through a Facebook group, “Financial Independence Forum.” Victims were deceived into investing in cryptocurrency with promises of high returns. One victim, identified as Victim-1, transferred 1.33 BTC to an individual named “Tom Sheldon Haley.” Investigators determined that Trade Propel was a scam falsely claiming ties to legitimate financial institutions.

The scheme funneled illicit funds through multiple wallets before reaching the Binance account in question. Federal authorities argue that the seized assets are directly linked to wire fraud proceeds and money laundering operations. The U.S. government now seeks a court ruling to permanently confiscate the assets, reinforcing its crackdown on crypto-related financial crimes.

This action highlights growing enforcement against fraudulent crypto schemes and the increasing role of law enforcement in securing the digital asset space.