Federal Forfeiture Action Targets $1 Million Linked to Cryptocurrency Scam
On Monday, September 16, 2024, the United States government filed a civil action for forfeiture involving over $1 million from a Flagstar Bank account associated with LCEpure Trade Inc. The action, filed in the U.S. District Court for the Western District of Pennsylvania, seeks to recover $1,085,931.11 that was seized on May 15, 2024, by the United States Secret Service (USSS).
The complaint indicates that this forfeiture is part of a broader investigation into a scheme known as “Pig Butchering,” a type of long-term investment fraud. In these scams, perpetrators typically establish online relationships with victims, convincing them to invest substantial amounts of money, often in cryptocurrency, under the guise of lucrative opportunities. However, the funds are misappropriated, leaving victims with nothing in return.
Among the documented victims is A.J., a Pennsylvania resident who was allegedly defrauded of approximately $250,000 through false promises of a romantic relationship and investment in cryptocurrency. The investigation revealed that A.J. transferred funds via wire transfers and cashier’s checks to various accounts as directed by the scammer, identified as Alyssa Jones, also known online as Snow Chen.
The Flagstar Bank account in question, which ends in 2171, was linked to multiple other victims of similar scams. Notably, W.G. and V.G., a married couple from Florida, were lured into transferring a total of $100,000 to the same account after being misled by a group advertising a weeklong investment seminar on social media.
Additionally, J.A., a Georgia resident, reported sending nearly $500,000 to the account under the belief he was investing in merchandise, while J.L., an 80-year-old from Virginia, was convinced to transfer $81,000 based on fraudulent claims of investment opportunities in cryptocurrency. Other victims include J.R. from New York and G.K. from Texas, who also lost significant amounts of money to the same account.
The USSS investigation outlined that the Flagstar Bank account was opened in October 2023 by an individual named MingMing Qui, based in Hangzhou, China. Following the account’s freezing on January 10, 2024, investigators identified numerous large international wire transfers linked to accounts in Hong Kong.
The forfeiture action cites violations of U.S. federal law, including wire fraud and money laundering statutes outlined in 18 U.S.C. § 1343 and 18 U.S.C. §§ 1956 and 1957. The USSS asserts that the funds in the Flagstar Bank account represent the proceeds from these illegal activities and are thus subject to forfeiture.
The complaint seeks a judgment of forfeiture in favor of the United States, asserting that the seized funds are tainted by their association with criminal acts. The case continues to develop as law enforcement agencies seek to address the implications of these fraud schemes and recover funds for the victims involved.
Please contact BlockTribune for access to a copy of this filing.
