Feds Seek Forfeiture of 162 Ethereum and 32 Bitcoin Tied to Elder Fraud Scheme

On Friday, July 5, 2024, the United States government filed a complaint seeking to forfeit cryptocurrency that was allegedly obtained from fraud victims.

In a complaint filed in the U.S. District Court for the Western District of Pennsylvania, the Department of Justice outlined its case for forfeiting 162 Ether and 32 Bitcoin currently held in a Binance account. According to court documents, the cryptocurrency was seized on May 9th via a warrant issued to the U.S. Secret Service.

The forfeiture action is the result of a criminal investigation into an elder fraud scheme targeting at least two elderly victims. According to the complaint, fraudsters gained victims’ trust and convinced them to liquidate their retirement and investment accounts. In one case, an 82-year-old Pennsylvania man was defrauded of $1.3 million, his life savings. Through forensic financial analysis, investigators traced transactions from the victims’ bank accounts to Tether stablecoins and eventually to the Binance account in question.

Records provided by Binance revealed the account was registered under the name “Shiv Pannar” and showed a history of Bitcoin deposits predating the most recent fraud. One victim, referred to as J.V., sent around $650,000 to the account in July-August 2021 according to transaction details. Additional analysis linked cryptocurrency holdings in the account to the comingling of funds from both victims.

The complaint alleges the cryptocurrency holdings constitute criminal proceeds subject to forfeiture based on laws prohibiting money laundering and wire fraud. If forfeited, the funds would be handled according to Treasury guidelines and could potentially be returned to victims pending court approval of claims.

Please contact BlockTribune for access to a copy of this filing.