The U.S. Federal Bureau of Investigation (FBI) has seized over $100,000 in non-fungible tokens (NFTs) and 86.5 Ether (ETH) following the arrest of an alleged scammer.
The scammer, Chase Senecal, known online as Horror (HZ), is accused of defrauding hundreds of victims of over $2.5 million. According to the Department of Justice, ZachXBT operated a fraudulent investment investigation using his company, XBT Corp., to save investors.
Seneca’s possessions, which included a $41,000 Audemars Piguet (AP) Royal Oak Watch, were taken by the FBI on Feb. 3 for federal forfeiture due to a breach of federal law, according to the FBI’s formal notification.
FBI Is Taking Crypto Scams Seriously
Apart from stating that all of the items was taken on October 24, the FBI’s notice of the incident contained little further. The exact NFTs in question are Bored Ape Yacht Club #9658 and Doodle #3114, and their respective market values at the time of seizure were $9,361 and $95,495.
The FBI said that the scammer and his associates used social media and other websites to deceive investors, claiming that they were a legitimate investment firm. They allegedly promised massive returns on investments, up to 2,000 percent, but never delivered on their promises.
The FB I has been investigating his activities since October 2020, and they arrested him in December. According to the Department of Justice, they seized over $100,000 in NFTs, 86.5 ETH, and a substantial amount of U.S. currency.
The FBI’s investigation into the activities are ongoing, and the Department of Justice encourages anyone who has been a victim of his fraudulent scheme to come forward and file a complaint.
This is not the first time the F BI has taken action against a crypto-related scammer. Last year, the agency arrested a Russian national for his involvement in a crypto scam that defrauded investors out of tens of millions of dollars.
The FBI’s actions show that it is taking crypto-related fraud seriously, and that it is willing to go after scammers who use digital assets to defraud investors. It is also a reminder for investors to do their due diligence before investing in any cryptocurrency-related company.