U.S. Government Seizes Crypto Assets in Major Crackdown on Wire Fraud

The U.S. government has launched a civil forfeiture action to seize various cryptocurrencies linked to a wire fraud and money laundering scheme. The assets, valued at over $1 million, were seized from a Binance account belonging to Avwerosuo Omokri, a Nigerian national. The fraud was orchestrated via Trade Propel, a platform that used a Facebook group to deceive investors with false promises of high returns.

• Civil forfeiture action targets crypto assets linked to fraud scheme.
• Assets seized from Binance account of Nigerian national Avwerosuo Omokri.
• Trade Propel used a Facebook group to scam investors.

In October 2024, the U.S. authorities executed a seizure that involved a diverse array of cryptocurrencies: 7.23918814 Bitcoin (BTC), 105.75351403 Ethereum (ETH), 636.11 Avalanche (AVAX), 14,120 Tether (USDT), 2.38 billion Shiba Inu (SHIB), and 319 million Pepe (PEPE). These digital assets were traced back to Trade Propel, a fraudulent investment platform that preyed on unsuspecting investors through a Facebook group named the “Financial Independence Forum.” The platform’s deceptive allure of financial freedom and high returns led victims into a trap, with one individual tricked into transferring 1.33 BTC to someone claiming to be “Tom Sheldon Haley.”

Civil forfeiture, in this context, is a legal action used to seize assets believed to be gained through illegal activities. It’s a tool the government employs to combat financial crimes and, in this case, to potentially return funds to victims. The complexities of tracing funds through multiple wallets to Omokri’s Binance account, as detailed by Special Agent Katrina P. Caulfield of the U.S. Secret Service, underscore the intricate nature of these schemes:

The assets were traced back to Trade Propel, a fraudulent investment platform that operated through a Facebook group, ‘Financial Independence Forum.’ – Special Agent Katrina P. Caulfield, U.S. Secret Service.

On February 19, 2025, the U.S. government filed a legal action in the U.S. District Court for the District of Massachusetts, aiming to permanently confiscate these seized assets. This move is part of a broader crackdown on crypto-related financial crimes, reflecting the government’s commitment to enhancing digital asset security.

This case is a stark reminder of the ongoing regulatory efforts in the cryptocurrency space. The increasing prevalence of such frauds has led to more stringent enforcement actions. The involvement of a major exchange like Binance and the use of social media platforms for scams highlight the challenges regulators face. While the promise of decentralization and financial freedom is enticing, the dark side of the industry—fraud and scams—remains a persistent threat.

At “Let’s Talk, Bitcoin,” we champion the revolutionary potential of cryptocurrencies while recognizing the need for vigilance. This case against Trade Propel serves as a cautionary tale, reminding us that while Bitcoin and other digital currencies offer incredible opportunities, they also require a high level of due diligence and awareness from users.

Consider the hypothetical crypto enthusiast, lured by the promise of quick wealth, only to fall victim to a scam. It’s a scenario that’s all too common, yet it underscores the importance of education and skepticism in the crypto world. And while it’s easy to be cynical about these scams, we must also appreciate the ingenuity of the fraudsters—even if it’s used for nefarious purposes. They thought they could pull a fast one, but they messed with the wrong government.

The broader implications of this case for the crypto industry are significant. It not only affects investor trust but also shapes the regulatory landscape. The crypto community’s response has been mixed, with some seeing it as a necessary step to clean up the space, while others worry about potential overreach and the stifling of innovation.

Balancing the transformative power of cryptocurrencies with the need for security is crucial. As the industry evolves, the challenge lies in fostering an environment that encourages innovation while protecting users from fraudulent schemes. This requires a delicate balance, one that respects the decentralized ethos of cryptocurrencies while ensuring that the digital economy remains secure and transparent.

Key Questions and Takeaways

What action has the U.S. government taken against cryptocurrency-related fraud?

The U.S. government has initiated a civil forfeiture action to seize cryptocurrency assets linked to a wire fraud and money laundering scheme.

What cryptocurrencies were involved in the seizure?

The cryptocurrencies involved included Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Tether (USDT), Shiba Inu (SHIB), and Pepe (PEPE).

How were the victims deceived in this fraud scheme?

Victims were deceived through a fraudulent platform called Trade Propel, which operated via a Facebook group named “Financial Independence Forum,” promising high returns on cryptocurrency investments.

Who was the account holder of the seized Binance account?

The account holder was Avwerosuo Omokri, a Nigerian national.

What is the significance of this case in the context of crypto regulation?

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

What is the current status of the seized assets?

The U.S. government is seeking a court ruling to permanently confiscate the seized assets.

Why is the use of social media platforms significant in this case?

The use of a Facebook group to perpetrate the scam illustrates how social media can be exploited for fraudulent schemes in the crypto space, posing challenges for regulation and enforcement.