Florida Seizes $1.5M in Cryptocurrency in Investment Scam Linked to Chinese National
Florida prosecutors have seized approximately $1.5 million in cryptocurrency assets connected to an investment scam in Citrus County. The assets were traced to a crypto wallet allegedly controlled by Tu Weizhi, a Chinese national currently believed to be in China. The seized tokens include AVAX, DOGE, PEPE, and SOL. A Citrus County resident reportedly lost $47,421 to the scam in July 2024.
The seizure was carried out under Florida's fugitive disentitlement framework, a legal mechanism that allows authorities to forfeit assets while the defendant remains outside U.S. jurisdiction. Officials have stated that Tu Weizhi will be arrested if he attempts to enter the United States. Prosecutors sought the seizure of the entire wallet balance, not just the amount equivalent to the original loss, with the wallet valued at about $1.5 million.
TRM Labs emphasized that the fugitive disentitlement law now applies to cryptocurrency seizures and noted that blockchain transparency facilitates traceability and asset recovery. Public notices indicate similar crypto seizures have occurred in Citrus, Broward, and Marion counties involving wallets supported by major exchanges and networks.
This case occurs amid significant fraud losses reported in the U.S. in 2024, with the Federal Trade Commission estimating approximately $12 billion in total fraud losses, $5.7 billion linked to investments, and the FBI's Internet Crime Complaint Center reporting around $9.3 billion in cryptocurrency-related losses.
