FBI investigates crypto romance scammers that swindled $5m

As an analyst with years of experience in cybercrime investigations, I find myself increasingly alarmed by the audacity and sophistication of these crypto romance scams. The fact that scammers are not only preying on the trusting nature of their victims but also exploiting the complexities of cryptocurrency transactions is a double-edged sword that leaves many vulnerable, particularly senior citizens.


The FBI is currently examining individuals who pretended to be affectionate partners, swindling victims out of almost $5 million by means of questionable investment strategies involving cryptocurrencies.

Investigators from the federal government in North Carolina are aiming to confiscate approximately $4.99 million that was obtained from unattached Tether (USDT) digital wallets, which were connected to a complex cryptocurrency romance scam, as reported by Triangle Business Journal.

The money was taken during a search carried out under a warrant in August, and it is currently being kept by the U.S. Marshals Service.

Romance scams, frequently referred to as “pig butchering” schemes, entail con artists assuming false identities of potential romantic partners to win the trust of their targets. After the victims have been tricked into investing in non-existent cryptocurrency opportunities, the deceivers disappear without leaving any sign of their whereabouts.

The FBI reported that the operation aimed at deceiving at least 71 individuals, among whom were a 60-year-old resident of Angier and an 83-year-old from Minnesota. This scam involved convincing them to invest in cryptocurrencies on a bogus trading platform called Bitkanant, which was designed to look like the legitimate Singapore-based Bitkan exchange.

After moving their USDT to the fraudster’s accounts, believing it was a routine investment, they received notice that their accounts were allegedly frozen and withdrawals were prohibited until extra taxes and charges were settled.

Often, this strategy is employed to get extra money from unsuspecting individuals, promising them that once they pay the additional sum, their funds will be returned. However, once they comply and make the payment, these funds are never released. Afterward, the site mysteriously vanished, leaving the victims with no way to seek redress.

Records show that con artists assumed false personas like “Jeanie” and “Alice” to target victims on social media networks such as WhatsApp. In one case, these swindlers spun a yarn about an uncle who invented a sophisticated Bitcoin trend-forecasting algorithm. They used this tale to persuade their victims that the investment scheme they were offering was genuine.

Two victims confirmed by the FBI suffered significant losses totaling over 2.75 million dollars due to these scams. At this time, no one has been apprehended, but the FBI is actively working on the investigation.

Senior citizens at risk

For several years now, the Bureau has consistently raised alarms regarding the escalating instances of these fraudulent activities, primarily focusing on older adults. As per its latest report from September, it was disclosed that in 2023 alone, losses due to crypto scams surpassed an astounding $5.6 billion. It’s important to note that people aged 60 and above were the demographic most impacted by these fraudulent activities.

In March 2023, an investigation by the Virtual Currency Unit of the Brooklyn District Attorney’s Office uncovered that a 51-year-old woman had been defrauded out of approximately $22,000 in cryptocurrency due to a romantic scam online.

This year, the U.S. Federal Trade Commission has cautioned people about an increase in online dating scams, advising them not to send money to strangers they meet online who claim to offer lucrative investment possibilities.

According to a study conducted at the University of Texas in March, it was found that approximately $75 billion was swindled through cryptocurrency scams known as “romance schemes” from January 2020 up until February 2024.

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2024-11-19 13:02