- The US Secret Service alleges Deltec Bank harbored shell companies involved in an international fraud scheme using deceptive crypto websites
- Seizures on June 13 and 15 led to the retrieval of up to $58.5 million from accounts linked to Deltec
- Victims were lured with promises of high returns but couldn’t withdraw funds; at least 74 shell companies were implicated
The United States Secret Service has made shocking allegations against Deltec Bank, asserting that the financial institution was unknowingly harboring shell companies at the center of an elaborate international fraud scheme. According to court documents, the fraudulent operation involved the creation of deceptive cryptocurrency websites, designed to deceive unsuspecting victims into depositing their digital assets or cash into accounts, under the false premise of making lucrative investments. As a result, up to $58.5 million was seized last month from accounts linked to Deltec, a prominent Bahamian financial institution with connections to stablecoin issuer Tether.
Deltec Didn’t Assist With Enquiries
According to unsealed court documents, the U.S. Secret Service carried out the seizures on June 13 and June 15, with an affidavit submitted by the Secret Service revealing that victims were enticed to invest their funds with promises of substantial returns. As part of the scheme, spoofed websites displayed fabricated increases in the victims’ account balances, coercing further deposits. However, these unfortunate victims were barred from making any withdrawals.
The shell companies at the heart of the fraud, namely Axis Digital Limited and GTAL, had their funds held at Deltec Bank. The bank had reportedly opened custodial accounts on behalf of these companies, allegedly unaware of their involvement in the illicit activities. Suspicion was raised when Mitsubushi Bank, where Deltec maintained the accounts, attempted to gather information on the shell companies but was met with obfuscation from Deltec.
Secret Service Prepared to Dig Further
Further investigations carried out by federal law enforcement have indicated that at least 74 shell companies received proceeds from wire fraud and funneled the funds to one of Deltec’s custodial accounts. From there, the money was transferred to other accounts in the Bahamas, carefully structured to avoid the detection and scrutiny that typically accompanies international wire transfers.
The implications of this widespread fraud scheme are far-reaching, as unsuspecting victims fell prey to the false promises made by the deceptive websites. With the Secret Service’s involvement and ongoing investigations, the focus is now on untangling the complex web of fraudulent activities and identifying the culprits behind this elaborate operation.
