US authorities are taking steps to return $8.2 million in crypto to scam victims. The amount was seized from three crypto wallets that belonged to scam activities.
The United States Attorney’s Office for the Northern District of Ohio filed a civil forfeiture complaint against 8,207,578 Tether (USDT). The FBI identified 33 victims nationwide, with losses totaling $4.9 million. Another five accounts were linked, with victims losing around $1 million more.
Scammers approached victims via text messages. They introduced themselves with fake numbers to start a conversation. Over time, they gained trust by having personal discussions. The scammers then requested victims to invest in cryptocurrency.
Legitimate platforms used to mask fraud
Scammers instructed victims to open accounts on legit websites like Crypto.com and Coinbase. After victims bought crypto, they transferred funds to fake investment websites, which the scammers operated while promising high returns.
In some cases, scammers allowed small withdrawals to gain trust. Later, they blocked withdrawals, claiming unpaid taxes. They pressured victims to wire more money to cover the fees. Once the scam ended, scammers cut off all contact with the victims.
Lake County woman loses life savings
In Nov. 2023, a scammer targeted a woman in Lake County, Ohio. The woman lost $663,352, including her life savings and Roth IRA. The scammer threatened her friends and family when she could no longer send money. She reported the scam to the FBI in June 2024.
Investigators traced the stolen funds to three crypto addresses through blockchain analysis. In Nov. 2024, law enforcement seized 8,207,578 USDT. Tether Limited transferred the funds to a wallet controlled by law enforcement.
The United States aims to forfeit the entire amount and return the money to victims. The complaint claims the seized funds exceed traceable losses and are tied to money laundering.
The FBI is still investigating cryptocurrency scams nationwide. Assistant United States Attorney James L. Morford represents the United States in this matter. Tether Limited assisted law enforcement in retrieving the stolen funds.
