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A sophisticated romance scam has defrauded dozens of victims, luring them into a fake cryptocurrency investment scheme that netted $5 million in stolen funds.
Key Notes
Two victims lost nearly $2.75 million combined, including retirement funds and life savings.Scammers used fake exchanges like Bitkanant to lure victims with fraudulent investment opportunities.Federal prosecutors in North Carolina are pursuing the forfeiture of over $4.99 million in cryptocurrency recovered from a sophisticated crypto romance scam that defrauded dozens of victims.
According to a recent report published by Triangle Business Journal, the scheme, which operated through fake trading platforms and emotional manipulation, highlights the growing threat of crypto scams targeting older individuals.
How the Scam Unfolded
The fraud began with seemingly harmless text messages and social media connections. Scammers, posing as love interests, built trust with their victims using false identities and elaborate backstories.
Among the 71 victims identified by the Federal Bureau of Investigation (FBI) were a 60-year-old man from Angier, North Carolina, and an 83-year-old Minnesota resident, who collectively lost nearly $2.75 million.
The perpetrators directed victims to Bitkanant, a fraudulent crypto trading platform designed to mimic the legitimate Singapore-based Bitkan exchange. Victims were convinced to invest their life savings, believing they were participating in a secure and lucrative opportunity.
One victim, a retired Angier resident, was contacted by a person claiming to be “Jeanie”, who presented herself as a fashion designer from Miami. Jeanie fabricated a story about her uncle developing a sophisticated algorithm for predicting Bitcoin prices.
Over time, she persuaded the victim to invest his entire retirement savings — $1.8 million — into the fake platform.
When the victim attempted to withdraw his funds, he was informed that withdrawals were blocked until additional taxes and fees were paid. Shortly afterward, the fraudulent website vanished, and the victim discovered his credentials were being used on similar clone sites.
Another victim, an 83-year-old man from Minnesota, was similarly deceived by an individual claiming to be “Alice”, who used the same backstory. He was manipulated into investing all his savings, including funds from a surrendered life insurance policy, amounting to $950,000.
The FBI Investigation
The FBI traced the stolen funds to nine unhosted Tether wallets, which were seized in August through a search warrant. These wallets contained $4.99 million in cryptocurrency, now held by the US Marshal Service. Federal authorities argue these funds represent proceeds from criminal activity and are pushing for their forfeiture.
Court documents revealed that the scammers rapidly moved the stolen funds across multiple wallets to obscure their trail, a common tactic in crypto fraud.
Despite recovering the funds, no arrests have been made in connection to the scheme. The FBI continues to investigate the case, suspecting it is part of a larger, organized operation.
Federal agencies have issued repeated warnings about the risks of crypto scams, urging the public to be cautious when approached by individuals online who promise investment opportunities. Experts recommend avoiding unsolicited investment offers and verifying the authenticity of any platform before transferring funds.
A Broader Trend
Meanwhile, the case is part of a broader trend of crypto scams targeting older adults. According to the FBI, romance scams, also known as “pig butchering scams,” have become increasingly prevalent, with scammers exploiting personal relationships to extract money.
In 2023 alone, losses from crypto scams exceeded $5.6 billion, with seniors being the most affected demographic. Fraudsters often combine emotional manipulation with promises of lucrative investments, leaving victims financially devastated.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
