Florida’s Bold $1.5M Crypto Seizure Shocks Scam Network

• Florida prosecutors seized approximately $1.5 million in cryptocurrency linked to an alleged investment scam.
• The assets were traced to a wallet tied to Chinese national Tu Weizhi, now charged with multiple financial crimes.
• Authorities used the state’s fugitive disentitlement framework to carry out the seizure while the suspect remains abroad.

Florida prosecutors on Thursday announced the confiscation of roughly $1.5 million in cryptocurrency after investigators traced funds from a Citrus County investment scam to a digital wallet controlled by a Chinese national. 

Uthmeier emphasized the state’s evolving response to digital financial crimes, noting that investigators have strengthened their ability to pursue sophisticated online fraud. “While scammers are changing their methods, I am proud of our Statewide Prosecutors’ ability to adapt and deliver justice,” he said.

The case originated from a July 2024 complaint filed by a Citrus County resident who reported losing $47,421 after sending funds to what he believed was a legitimate investment platform. That report prompted an investigation that ultimately led to Tu’s alleged operation.

Investigators Trace Crypto Trail to Tu’s Digital Wallet

According to the Attorney General’s office, investigators followed a transaction trail that linked the victim’s losses to a broader pool of crypto assets stored in Tu’s digital wallet. Rather than limit recovery to the original loss amount, prosecutors sought authority to seize the entire wallet balance.

The wallet was holding a mix of AVAX, DOGE, PEPE, and SOL tokens at the time of seizure. Authorities believe Tu remains in China and stated that he will be taken into custody if he attempts to enter the United States.

The seizure highlights how digital transactions, once viewed as difficult to track, have become increasingly accessible to forensic review. Industry observers noted that the transparency of public blockchains often supports legal proceedings by providing verifiable traces of movement across networks.

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Florida Uses Fugitive Disentitlement in Crypto Seizure

Florida executed the seizure under its fugitive disentitlement framework, which allows courts to move against assets tied to criminal cases when defendants remain outside state jurisdiction. The doctrine bars individuals from using Florida’s courts to contest asset forfeiture unless they return to face charges.

Legal analysts say the growing use of such tools reflects both rising fraud levels and the maturing comfort of courts with crypto-related cases. Public filings this year show similar forfeiture actions involving wallets connected to various exchanges across multiple Florida counties.

The broader landscape of financial crime has also shifted. Federal regulators recently reported multibillion-dollar losses tied to investment and crypto-related schemes, underscoring the continued expansion of online fraud and the challenges facing law enforcement.

Also Read | Florida Man Loses $317,000 After Falling for a Crypto Scam