David Edwards
The U.S. government has launched a civil forfeiture action against cryptocurrency assets seized from a Binance account, citing their connection to wire fraud and money laundering. The case, filed on February 19 in the U.S. District Court for the District of Massachusetts, involves digital holdings confiscated in October 2024.
Fraudulent Scheme Tied to Trade Propel
According to an affidavit by Special Agent Katrina P. Caulfield of the U.S. Secret Service, the seized funds were linked to fraudulent activities orchestrated through a scam investment platform known as Trade Propel. The scheme targeted victims via a Facebook group called “Financial Independence Forum,” where they were encouraged to invest in what appeared to be a promising cryptocurrency trading opportunity.
One victim, identified as Victim-1, was persuaded to transfer 1.33 BTC under the guidance of an individual using the alias “Tom Sheldon Haley.” Further investigation revealed that Trade Propel was a fraudulent operation, falsely associating itself with legitimate financial institutions and flagged in multiple fraud reports.
Crypto Assets and Binance Connection
The government’s complaint lists several cryptocurrencies—referred to as the Defendant Property—seized from a Binance account associated with User ID XXXXX3280 on October 25, 2024. These assets include:
- 7.23918814 BTC
- 105.75351403 ETH
- 636.11899592 AVAX
- 14,120.995091 USDT
- 2,380,467,906.17 SHIB
- 319,008,151.01 PEPE
The funds were funneled through multiple intermediary wallets before reaching the Binance account, which was registered under Avwerosuo Omokri, a holder of a Nigerian passport.
Federal Seizure and Legal Action
The U.S. government argues that the assets represent proceeds of wire fraud and were utilized in a money laundering scheme. The civil forfeiture filing seeks a court order to officially confiscate the assets and distribute them in accordance with federal law.
The court document affirms:
“This court has found probable cause for forfeiture of the Defendant Property.”
Authorities emphasize that such actions are part of a broader effort to dismantle fraudulent schemes exploiting cryptocurrency platforms, underscoring the growing regulatory scrutiny on crypto-related financial crimes.
