The government has clawed back millions in stolen crypto that it’s now returning to victims
US authorities are taking action to return $8.2 million in cryptocurrency to victims of a fraudulent investment scheme that tricked individuals into transferring funds. The scam, which involved sending deceptive messages to unsuspecting people, convinced victims to invest in what they believed to be legitimate crypto opportunities.
The fraudsters initiated contact through text messages, dating apps, and professional networking platforms, often pretending to have sent a message to the wrong number. After establishing trust, they persuaded victims to invest in cryptocurrency through a fake platform that promised high returns. Instead of generating profits, the victims’ money was funneled into accounts controlled by the scammers.
According to the FBI, at least 33 people have been identified as victims, with another five still being traced. Total reported losses amount to $6 million. A complaint filed in an Ohio District Court seeks to have the seized funds officially forfeited so they can be distributed back to those affected. Authorities noted that the accounts held more money than the victims’ traceable losses, suggesting additional fraudulent activity and money laundering.
Investigators were able to track the stolen funds through blockchain analysis after one victim reported the fraud to the FBI’s Internet Crime Complaint Center in June. A portion of the funds had been converted into Tether and transferred across three cryptocurrency addresses. Law enforcement obtained a seizure warrant, leading to the freezing of the funds by Tether and their transfer to a government-controlled wallet.
Experts warn that cryptocurrency fraud is evolving, with scammers using advanced techniques, including artificial intelligence, to manipulate victims more effectively. Reports indicate that crypto-related scams continue to rise, with billions lost to fraudulent schemes worldwide. Authorities remain vigilant in their efforts to combat these crimes and recover stolen assets.
