US authorities are working to return $8.2 million in cryptocurrency seized from three fraudulent accounts linked to a scam that targeted unsuspecting victims through fake investment schemes.
The fraud, which involved tricking individuals with deceptive “wrong number” messages, led to total losses of around $6 million.
How the Scam Operated
Scammers contacted random individuals through text messages, dating apps, and professional networking platforms, pretending to have sent a message to the wrong number. After initiating conversations, they built trust with the victims before introducing them to a fake cryptocurrency investment opportunity.
The fraudsters guided victims to open legitimate crypto exchange accounts and then transfer funds to a fake investment platform under their control. The site falsely promised high returns and encouraged further deposits. In one case, an Ohio woman lost her entire life savings of $663,000 and was later threatened when she could not send more money.
Investigation and Recovery of Funds
The FBI launched an investigation after receiving a complaint in June. Blockchain analysis revealed that some of the stolen funds had been converted into Tether (USDT) and transferred to three specific cryptocurrency addresses. Authorities obtained a federal seizure warrant, allowing Tether to freeze the funds and move them to a government-controlled wallet.
On February 27, acting US Attorney Carol Skutnik and Assistant US Attorney James Morford filed a forfeiture request in an Ohio District Court to secure legal approval for returning the funds to victims. They noted that the seized accounts contained more money than the traceable losses, and the excess funds were suspected of being linked to money laundering and wire fraud.