U.S PROSECUTORS SEEK TO SEIZE $5 MILLION FROM CRYPTO ROMANCE SCAM

U.S. prosecutors are taking action against crypto romance scammers, seeking to seize $5 million from fraudulent activities. These scammers, investigated by the FBI, posed as romantic interests to deceive victims into investing in fake cryptocurrency schemes.

The operation targeted at least 71 victims, including seniors, with losses totaling nearly $5 million.

How the Scam Worked

Scammers used fake identities to approach victims on social media platforms like WhatsApp, building trust before convincing them to invest in a fraudulent trading platform called Bitkanant. This platform closely resembled the legitimate Singapore-based Bitkan exchange.

Once victims transferred funds to the scammer's wallets, they were informed that their accounts were frozen and withdrawals were disallowed until additional taxes and fees were paid.

The Impact

The FBI reports that crypto scam losses exceeded $5.6 billion in 2023 alone, with individuals over 60 being the most affected demographic. In March 2023, a 51-year-old woman lost over $22,000 to a similar crypto romance scam.

Prosecutorial Action

Federal prosecutors in North Carolina are working to seize over $4.99 million recovered from unhosted Tether (USDT) wallets linked to the scam.

The funds were seized through a search warrant executed in August and are now held by the U.S. Marshal Service.