U.S. Moves to Forfeit $7.1 Million in Crypto Linked to Nigerian, Russian Fraud Network

The United States government has initiated legal proceedings to seize over $7 million in cryptocurrency assets tied to an international fraud scheme operated by suspects in Nigeria and Russia.

Federal prosecutors in the Western District of Washington filed a civil forfeiture complaint detailing how the cybercriminal ring allegedly defrauded American victims of more than $97 million between 2022 and 2024. The suspects reportedly posed as representatives of legitimate oil and gas companies, luring victims into transferring funds into fake escrow accounts for fictitious transactions, including oil tank storage services in Rotterdam and Houston.

According to U.S. Department of Justice filings, the scammers abruptly cut off communication with victims once payments were made. The illicit funds were swiftly moved across multiple digital wallets and exchanged through several cryptocurrency platforms, including Binance.

In December 2024, Homeland Security Investigations seized eight crypto accounts holding assets worth roughly $7.1 million. These included substantial amounts of USDT, Bitcoin, Ethereum, and other digital currencies. All the wallets were reportedly linked to a shell company known as Nest Services Limited.

Authorities said that further forensic analysis revealed the IP addresses and KYC (Know Your Customer) data tied to the wallets originated from users in Nigeria and Russia. None of the accounts were connected to actual businesses in the oil and gas sector, as originally claimed.

The complaint also listed several front companies believed to be used in the elaborate scam, including names such as Apex Oil and Gas Trading, Legacy Energy Logistics, and Sea Forest International.

U.S. officials said this operation was part of a broader effort to clamp down on transnational financial crimes exploiting cryptocurrency platforms. The case remains under investigation, and no formal indictments have been announced as of press time.