TLDR
- The U.S. government has confiscated $8.2 million in cryptocurrency from fraudsters who befriended victims through 'wrong number' messages, planning to return the funds to 38 recognized victims.
- Scammers employed an elaborate method to build rapport, starting with erroneous texts that gradually transitioned into fraudulent crypto investment pitches.
- A woman from Ohio parted with her $663,000 life savings and faced threats against her family when she couldn't deliver more cash.
- Authorities discovered that the looted amounts were converted into Tether and funneled to three different crypto addresses, which are now suspended.
- Losses experienced by victims climbed to $6 million, and extra money located in the seized accounts was suspected to be tied to laundering operations.
U.S. officials have confiscated $8.2 million from a fraudulent scheme leveraging deceptive text messages to ensnare unsuspecting individuals. This amount will be rightfully returned to 38 acknowledged victims. This announcement was made in a statement dated February 28 by the Ohio District Attorney's office.
The investigation initiated after a victim lodged a complaint with the FBI's Internet Crime Complaint Center in June. By scrutinizing blockchain transactions, detectives traced the stolen crypto transformed into Tether and sent to three addresses.
Fraud activity kicked off by sending random text messages pretending to have contacted an incorrect number. The scammers adopted text communication, dating apps, and professional groups to initiate communication.
Once contact was established, fraudsters focused on gaining trust. They used persuasive tactics to nurture friendships and solidify confidence over time.
Having built a rapport, the scammers narrated tales of lucrative crypto investments, speaking of their fabricated earnings or those of individuals they allegedly knew.
Scammers guided victims in setting up genuine cryptocurrencies accounts but lured them to transfer funds into a bogus investment platform they controlled.
The fictitious platform showcased false earnings to motivate further investments. Victims mistakenly believed their investments were flourishing, with an illusion they could cash out whenever they chose.
The Victims’ Stories
The deceptive tactics cost one Ohio woman her lifelong savings of $663,000. When she refrained from sending more funds, fraudsters issued threats against her loved ones.
So far, the FBI has identified 33 fraud victims, with efforts continuing to uncover five more—the total losses sum up to $6 million.
Following a federal seizure warrant, Tether froze the scammer's funds, which were then securely moved into a wallet managed by law enforcement.
US Attorney Carol Skutnik and Assistant US Attorney James Morford, on February 27, initiated a forfeiture complaint to proceed with returning the confiscated crypto to victims.
Although traced victim losses stood at $6 million, authorities discovered $8.2 million, the surplus believed to be linked to laundering and wire fraud.
Cyvers, a blockchain security firm, highlights that such scams, commonly called 'pig butchering,' are increasingly significant threats, pinpointing 200,000 incidents in 2024 with financial losses in billions.
Security analysts at Chainalysis caution that advances in artificial intelligence simplify the perpetuation of such scams. Their February 13 report projects scam losses might hit unprecedented figures in 2025.
The investigation remains ongoing as authorities continue identifying more victims and work on returning the seized funds.
