The US Government has confiscated $5.25 million from six bank accounts held at JPMorgan Chase, alleging that the money is tied to a complex fraud scheme.

A legal filing by the US Justice Department claims that the funds were stolen from a workers union in Massachusetts, which was deceived into transferring millions of dollars directly to scammers.

The Justice Department stated that the union received an email in January of the previous year, supposedly from the union’s investment manager. The email appeared legitimate, requesting the union to transfer $6.4 million to a different bank account.

Following the union’s compliance with the fraudulent request, prosecutors revealed that some of the money was funneled to cryptocurrency exchanges, $5.25 million was sent to JPMorgan Chase accounts, and $61,612 was directed to a Texas Bank and Trust account, which has also been seized.

The Justice Department disclosed that the scammers enlisted individuals known as money mules to swiftly move the funds among various accounts to conceal their origins.

Prosecutors are now seeking the permanent forfeiture of all the funds seized from the US bank accounts.

“BEC fraud schemes pose a significant threat to businesses and individuals across the country, causing substantial financial and emotional harm to victims by exploiting trusted communication channels they rely on daily. Today’s civil forfeiture action shows that when victims report such wrongdoing to authorities, there are measures that can be taken to recover stolen funds. We hope that today’s action will help restore some sense of stability and justice for those affected by fraud.”

Stay informed – Subscribe to receive email alerts directly to your inbox. Check out price action on X, Facebook, and Telegram. Explore The Daily Hodl Mix.

Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that your transfers and trades are at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it serve as an investment advisor. Please note that The Daily Hodl engages in affiliate marketing.

Image Credit: Midjourney