Crypto Romance Scam Dupes 71 Victims in $5M FBI Probe

The U.S. Federal Bureau of Investigation (FBI) has launched an inquiry into a $5 million crypto romance scam that defrauded 71 victims across the United States. Dubbed “pig butchering,” the operation targeted older adults by using fake social media profiles to build trust before convincing them to invest in fraudulent cryptocurrency platforms.

The scammers involved were said to have posed as potential romantic partners through platforms such as WhatsApp, building trust with their victims over an extended period of time before encouraging them to shell out money.

Victims were then directed to Bitkanant, a fraudulent trading platform designed to mimic legitimate Singapore-based cryptocurrency exchange Bitkant.

The FBI’s probe gained traction in August 2024 when federal prosecutors in North Carolina executed a search warrant that resulted in the seizure of more than $4.99 million in unhosted Tether wallets. These funds are currently held by the U.S. Marshals Service.

However, this money is only a portion of the widespread impact of crypto scams, with other victims spread across the country. Per the FBI, among these victims were a 60-year-old from Angier, North Carolina, and an 83-year-old from Minnesota. Both were lured into the scheme with the promise of lucrative crypto investments.

After victims transferred their funds, primarily in USDT, they were informed that their accounts had been frozen. To recover their money, they were told to pay additional taxes and fees. Despite complying, the victims never saw their original investments returned, and the scammers disappeared without a trace.

FBI Warns of Growing Crypto Scam Threats

Older individuals have been popular victims of many cryptocurrency scams. According to the FBI’s first annual Cryptocurrency Fraud Report, people aged 60 years and older filed more than 16,000 complaints of fraud in 2023 alone, reportedly losing over $1.6 billion.

A post on the FBI’s official website shares the step-by-step process of how the crypto romance scam tricks individuals. The process starts with social media, text messages, and dating sites being used as the primary methods to initially lure and contact victims.

Once initial communication has been established, scammers begin to build trust using tactics such as excessive flattery, empathizing, sharing of pictures, expressing a strong romantic interest in the victim, and even offering to meet in person before backing out at the last minute.

After the scammer has gained the victim’s trust, they then introduce the topic of investing. Common investments include binary trading, liquidity mining, and gold futures. Once they have successfully convinced their victim to participate in the crypto scheme, the scammer will “teach” the victim how to invest.

Later on, they will be duped into believing that their initial investment gained returns through a fraudulent platform. The move will appear to be lucrative, encouraging them to invest more. However, once the victim is ready to withdraw their earnings they will find that their accounts have been frozen, with a requirement to pay “taxes” and “fees” to unlock their funds.

How is the FBI Fighting These Scams?

The FBI is currently investigating fraudulent crypto investment platforms and companies, announcing that it may attempt to contact individuals they believe have fallen victim.

The agency urges people who believe they have been scammed to halt transferring funds to the suspected criminals, and file a report with the FBI’s Internet Crime Complaint Center immediately.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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