DOJ Targets $12 Million in USDT From Scam Site Posing as Crypto Exchange

The funds were traced to digital wallets tied to a fake trading platform, according to a civil complaint filed on September 5 in Albany and publicly confirmed on September 9.

The Department of Justice stated that the platform lured people into depositing money outside of its main interface.

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The case outlines how those behind the scam used messaging apps to initiate contact and build trust before directing victims toward the fake exchange.

According to the filing, ten people who spoke Mandarin were first contacted through random text messages. These interactions shifted toward conversations about investing, which eventually pointed victims to a fraudulent website called ShakepayEX.

The website mimicked the design of a real Canadian exchange, which makes it seem reliable.

Once users sent their money in, they could not withdraw it. The scammers gave excuses like additional fees or new requirements, and continued asking for more money. Investigators said these tactics resulted in total losses exceeding $10 million.

Prosecutors noted that the case shows how civil forfeiture can be used to freeze stablecoin funds quickly. With help from companies like Tether, the US government is working to block such funds on-chain.

Acting US Attorney Sarcone described crypto investment fraud as a growing threat. He noted that people across the country are being targeted by schemes that operate internationally.

Recently, the US Treasury Department sanctioned individuals and groups from North Korea, Russia, and China. What happened? Read the full story.