Crypto Scam Exposed: US Officials Seizing and Returning $8.2 Million

The scheme involved reaching out to random individuals through text messages, pretending to have the wrong number.

The fraudsters guided victims to open accounts on real crypto exchanges but then directed them to a fake investment platform they controlled. This site displayed counterfeit profits, which encouraged victims to invest more.

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In one case, an Ohio woman lost her life savings—$663,000—after being pressured to send additional money to "unlock" her funds. When she could no longer pay, the scammers allegedly threatened her friends and family.

An FBI investigation began after a victim reported the fraud in June 2024. A blockchain analysis revealed that some of the stolen funds had been converted into Tether USDT $1.00 and moved to three specific crypto addresses. Acting on a federal seizure warrant, authorities had Tether freeze the assets and transfer them to a government-controlled wallet.

On February 27, prosecutors in Ohio filed a forfeiture complaint requesting court approval to distribute the funds back to victims. Acting US Attorney Carol Skutnik and Assistant US Attorney James Morford explained that the three wallets held more money than the identified losses, suggesting additional funds were tied to money laundering and wire fraud.

Officials have confirmed that 33 people were affected, with total reported losses at $6 million. Investigators are still working to identify five more potential victims.

Recently, Indian officials seized around $190 million in cryptocurrency linked to the BitConnect fraud scheme. How? Read the full story.