Prosecutors Move to Seize Over $700K From Man Who Pleaded Guilty to Bitcoin Scam

On Thursday, August 22, 2024, the United States government asked the US District Court for the Eastern District of Michigan to issue a forfeiture order against Filippo Cardone.

Cardone had pleaded guilty to one count of wire fraud in August 2024 for his role in a cryptocurrency scheme that defrauded victims of over $723,500 between 2018 and 2019. As part of a plea agreement, Cardone acknowledged the scheme and agreed to forfeit any profits obtained from the crime.

The plea agreement stated that Cardone falsely represented himself as a Bitcoin dealer, telling victims he would exchange cash wire transfers for Bitcoin. However, he never provided the Bitcoin after receiving money from victims. Court documents indicate Cardone knowingly made misleading statements with the intent to defraud individuals of their money.

In their latest filing, prosecutors requested the court enforce the forfeiture provisions of Cardone’s plea deal. They argued forfeiture is mandatory under federal law for crimes like wire fraud that generate financial proceeds. Prosecutors also pointed to precedent that allows courts to order monetary judgments even if the exact properties involved can’t be recovered.

Cardone had consented to a forfeiture money judgment of $723,500 as part of his plea. Prosecutors informed the court they had conferred with Cardone’s attorney, who did not oppose their motion. If approved, the forfeiture order would take effect at Cardone’s November sentencing and allow the government to seize up to $723,500 from Cardone’s current or future assets.

The U.S. Attorney’s office filing maintained the forfeiture amount reflected the losses acknowledged in Cardone’s plea. It asked the court to formally enter a preliminary forfeiture order before sentencing to give the parties time to address any issues. With no objections raised, the court is now in a position to formally approve the forfeiture of ill-gotten gains as Cardone faces punishment for his fraudulent cryptocurrency scheme.

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