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In a major crackdown on international cybercrime, the United States government has moved to confiscate over $7.5 million in cryptocurrency linked to a sophisticated fraud network involving individuals based in Nigeria and Russia. The scheme, which operated from mid-2022 to mid-2024, reportedly scammed more than $97.1 million from U.S. citizens through fraudulent investment offerings and the misuse of cryptocurrency platforms, notably Binance.
According to legal documents reviewed by Peoples Gazette and supported by filings from the U.S. Department of Homeland Security (DHS), the suspects deceived victims into transferring funds under the guise of investing in oil and gas ventures. The fraudulent scheme promised returns through deals involving oil storage facilities in Rotterdam, Netherlands, and Houston, Texas. Victims were lured into transferring money to fake escrow companies but were subsequently cut off from communication once funds were received.
The perpetrators are accused of using several shell companies collectively referred to as “False Escrow Entities” to mask their activities. These companies included names like Sea Forest International, Apex Oil and Gas Trading, Terminal Energy International Escrow Service, Energo Horizons Logistics, Navigator Energy Logistics, Legacy Energy Logistics Transport Group, and Green Tree Gateway.
A federal civil forfeiture complaint filed in the U.S. District Court for the Western District of Washington in Seattle details how DHS investigators identified and froze at least eight cryptocurrency wallets in December 2024. These wallets were hosted on Binance and were collectively trading under the name Nest Services Limited. The crypto holdings span multiple digital assets, including:
• 440,597.8 USDT (Tether)
• 19 BTC (Bitcoin)
• 39 ETH (Ethereum)
• 156 TRX (TRON)
• 84 million LUNC (Terra Luna Classic)
• 5.5 YFI (Yearn.Finance)
• 129,601 POL (Polygon)
• 288,883 ADA (Cardano)
These wallets were identified after extensive analysis of IP addresses and know-your-customer (KYC) data, linking the accounts directly to individuals operating from Nigeria and Russia. None of the entities involved had any legitimate affiliations with the global oil and gas industry, despite presenting themselves as such to mislead their victims.
Further investigation revealed the scam’s complex web of financial deception, involving no fewer than 81 accounts across 24 traditional financial institutions and 19 accounts at eight different cryptocurrency exchanges. These accounts were used to launder millions of dollars obtained through domestic and international wire transfers.
The U.S. government is now seeking a court order for the final forfeiture of the seized assets as part of broader efforts to dismantle international financial crime networks that exploit vulnerable investors. This action represents a coordinated approach between federal law enforcement and international financial monitoring systems aimed at tracing, freezing, and reclaiming assets derived from illicit activities.
Source: Peoples Gazette