- The FBI has identified 33 victims of a cryptocurrency investment scam across the U.S., with total losses reaching approximately $4.9 million.
- Scammers used “wrong number” text messages to initiate contact, build trust, and eventually convince victims to transfer cryptocurrency to fake investment platforms.
- The U.S. Attorney’s Office has filed a civil forfeiture complaint against over $8.2 million in Tether cryptocurrency, with plans to return funds to victims if successful.
Federal authorities have launched a civil forfeiture action targeting more than $8.2 million in Tether cryptocurrency linked to an extensive investment fraud scheme. The U.S. Attorney’s Office for the Northern District of Ohio filed the complaint after FBI investigations uncovered dozens of victims nationwide who collectively lost nearly $5 million to sophisticated cryptocurrency scammers.
The FBI has documented 33 victims across the country who fell prey to the elaborate scheme, including a resident from Mentor, Ohio. Investigators have also identified five additional affected accounts and are working to locate their rightful owners. The total documented losses have reached approximately $4.9 million.
According to court documents, the fraudsters employed a calculated approach, initiating contact through seemingly innocent misdirected text messages. This “wrong number” technique served as the entry point for establishing relationships with victims.
“This personal testimonial lessened any uncertainties the victims may have had about virtual currencies and eventually had the intended effect to persuade the victim to proceed with the investment,” explained the Attorney’s Office in their official release.
The scam followed a consistent pattern. After gaining trust through extended conversations about shared interests like hobbies and religion, perpetrators would introduce cryptocurrency investment opportunities, describing their purported success. Victims were then guided to create legitimate accounts on established exchanges like crypto.com or Coinbase. However, when transferring funds to what they believed were investment platforms, victims unknowingly surrendered complete control of their assets to the scammers.
One particularly devastating case involved a Lake County woman who lost her entire life savings of approximately $663,352, including her Roth IRA funds. The victim’s ordeal began in November 2023 when she responded to a text from an unknown number. After building rapport with her “friend,” she followed instructions to open a Crypto.com account and transfer funds. When she later attempted to withdraw money, the scammer demanded additional payments. After depleting her resources, the victim faced threats that the scammer would “take care of” her friends and family. She reported the crime to the FBI’s Internet Crime Complaint Center in June 2024, triggering an investigation by the FBI Cleveland Division.
USDT (Tether) is a stablecoin—a type of virtual currency designed to maintain a consistent value, typically pegged to the U.S. dollar. Like other cryptocurrencies, Tether transactions are recorded on a public blockchain, creating an immutable digital ledger that has proven valuable for investigators tracking fraudulent activities.
If the government’s forfeiture action proves successful, authorities intend to return the recovered funds to verified victims. This case highlights the increasing sophistication of cryptocurrency Scams and the growing capabilities of law enforcement to trace and seize digital assets associated with financial crimes.
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