03/03/25

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US authorities are in the process of returning $8.2 million in cryptocurrencies that were frozen and seized from three accounts linked to a scam targeting unsuspecting individuals through misleading messages. The fraudulent scheme operated by sending text messages that appeared to be misdialed, allowing scammers to establish a rapport with recipients. Once trust was cultivated, these individuals were persuaded to invest in a fake cryptocurrency initiative.

According to information from the Ohio District Attorney’s office, the FBI has so far identified 33 victims of this scheme, with five additional victims still under investigation. The total financial damage attributed to the scam amounts to approximately $6 million. The investigation was triggered when a victim reported the incident to the FBI’s Internet Crime Complaint Center. Following this, analysts traced a portion of the illicit funds, which had been converted to Tether and transferred to the three relevant addresses.

Upon executing a federal seizure warrant, authorities collaborated with Tether, which subsequently froze the assets and moved them to a wallet controlled by law enforcement. In a forfeiture petition filed in Ohio, federal prosecutors are seeking to claim the funds in the identified accounts as part of their efforts to compensate the scam’s victims. Prosecutors noted that these accounts contained sums exceeding the victims’ verifiable losses, with these extra funds being tied to activities related to money laundering and wire fraud.

The scammers employed a variety of manipulative tactics, initially connecting with victims via innocuous messages sent through text, dating apps, and professional networking groups. After earning their trust, they shared success stories about cryptocurrency investments to alleviate any apprehensions, eventually urging victims to invest. In one notable case, a woman from Ohio lost her life savings of $663,000 and was coerced into sending further payments under the threat of harm to her loved ones.

Recent analyses indicate that generative AI technology is enabling scammers to increase the scale and effectiveness of their operations, raising concerns about record losses for investors in the coming years. Onchain security researchers highlight that schemes like “pig butchering” pose significant risks, resulting in billions of dollars lost across numerous cases in the current year.