Crypto asset recovery and victim restitution, the U.S. Department of Justice (DOJ) has announced efforts to return millions in cryptocurrency to victims of a $97 million oil and gas investment scam.
According to an investigative report by Chain Retrieval, the scam involved a web of shell companies and fake contracts that lured investors with promises of high returns from lucrative oil and gas operations in regions like Texas, West Africa, and the Middle East. Instead, funds were funneled into crypto wallets controlled by the fraudsters.
Chain Retrieval, a leading blockchain forensics and recovery firm, worked alongside law enforcement to trace the stolen funds across Ethereum, Bitcoin, and USDT networks, identifying dozens of wallet addresses used to launder and hold the stolen assets.
The DOJ’s asset forfeiture division confirmed that millions in digital currency have been frozen and will be redistributed to verified victims as part of a broader restitution process.
How the Scheme Unfolded and Why Crypto Played a Key Role
The fraudulent investment scheme promised guaranteed returns backed by oil exploration and refining deals. Victims were shown fabricated documents, doctored financials, and even invited to online “investor briefings” featuring fake executives.
Once hooked, victims were instructed to send investments via crypto for “faster clearing.” But the funds were immediately routed through DeFi protocols, privacy wallets, and international exchanges to obscure their origin.
Chain Retrieval analysts used advanced on-chain tools to piece together the trail. “This case shows how quickly fraudsters are turning to blockchain—but it also shows they can’t hide forever,” said a Chain Retrieval spokesperson.
The DOJ stated that more assets are still under investigation and that several international warrants have been issued for suspects believed to be operating in Southeast Asia and Eastern Europe.
The agency emphasized that victim restitution is a top priority, and this recovery demonstrates how blockchain transparency, when combined with forensic expertise, can lead to meaningful outcomes for those defrauded.
Chain Retrieval continues to work with affected investors and law enforcement to locate additional assets tied to the scam, which may still be held in dormant wallets or staked in DeFi protocols.