U.S. Secret Service Uncovers $860,000 Nigerian Cryptocurrency Fraud.

The U.S. Secret Service has seized $860,000 from a Nigerian cryptocurrency account tied to a sophisticated business email scam. The funds, believed to be fraud proceeds, were tracked through a detailed investigation, according to court filings.

The forfeiture complaint was filed by Special Agent Jayson Bradshaw in the U.S. District Court for the Eastern District of Virginia on October 2, 2024. Judge Claude M. Hilton issued an arrest warrant in rem on October 10, authorizing the seizure of the funds without requiring input from the defendant.

The case revolves around a Nigerian suspect who allegedly intercepted email communications between a couple purchasing a home and the law firm facilitating the sale. Victim 1, a resident of Reston, Virginia, transferred $966,500 on April 17, 2024, believing the money was going to the law firm’s account for closing costs on a property in Denver, North Carolina.

Court filings show that the scam began on April 2, 2024, when the suspect started intercepting emails between the parties. Using spoofed email addresses that closely resembled those of Victim 1 and his wife, the suspect communicated with both sides, posing alternately as the buyers and the law firm.

Neither the couple nor the law firm detected the fraud until April 19, when the couple and their realtor arrived at the law firm for what they believed was a 10:00 a.m. appointment, only to learn it had been scheduled for 2:00 p.m.

During the meeting, the law firm’s attorney inquired about the payment status. Surprised, Victim 1 replied that the funds had already been transferred two days earlier to a Bank of America account ending in -0822, following wiring instructions sent via email.

The discrepancy raised immediate concerns. Victim 1 contacted his bank, Charles Schwab & Company, to report the fraudulent transfer. Subsequent investigations revealed that the suspect had moved the stolen funds from the Bank of America account to a cryptocurrency account on April 18.

A total of $960,000 in fraud proceeds was funneled into the suspect’s crypto account. On April 18, the suspect made a Bitcoin transaction of 1.588106 BTC, valued at $98,276.94, to the address bc1qz3ms6tlc2d4lkrp6q6al28tkknyzvaflqt4y72 using transaction ID b8c5516bd2373553b795c825247c54cbe6787afd16e97b69f5d0beb639ef4df8. The transaction incurred a fee of $1,723.

The remaining crypto account balance of $860,000 was seized by the Secret Service. Investigators traced the transaction to a Binance address, 1LdEvfQGAY4stVWpCo4ynMt1NUVDbY7JZG, which was linked to a Nigerian citizen residing in Turkey through Binance’s Know Your Customer (KYC) verification process.

Records also revealed that $89,999.97 had been withdrawn from the account. The Secret Service is seeking forfeiture of the remaining funds under Title 18 of the U.S. Code, which allows the government to seize money obtained through illegal activities.

The scam highlights the growing sophistication of cybercriminals who exploit technology to execute elaborate schemes. By impersonating both the buyers and the law firm, the suspect manipulated the transaction to redirect the funds.

This case is a stark reminder of the risks posed by business email compromise (BEC) scams, which target high-value financial transactions and remain one of the most financially damaging forms of cybercrime.

The investigation is ongoing as the Secret Service works to recover the stolen funds and bring the perpetrator to justice.