FBI Probes Crypto Romance Scam That Defrauded Victims of $5 Million

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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November 19, 2024

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The Federal Bureau of Investigation (FBI) has been investigating a $5 million crypto romance scam since August, targeting 71 victims through fraudulent investment schemes.

Court documents reveal scammers used fake social media profiles to lure individuals into a fraudulent trading platform known as Bitkanant.

FBI Tracks $5 Million Crypto Romance Scam and Seizes Tether

According to reports, the investigation gained momentum in August when federal prosecutors in North Carolina executed a search warrant that led to the seizure of over $4.99 million in unhosted Tether (USDT) wallets.

The funds, now held by the U.S. Marshal Service, represent only part of the scam’s widespread impact, with victims spread across the country.

Among the affected individuals are a 60-year-old from Angier, North Carolina, and an 83-year-old from Minnesota, both lured into the scheme with promises of lucrative cryptocurrency investments.

Scammers posed as romantic partners on platforms like WhatsApp, gradually building trust with victims over weeks or months before encouraging them to invest.

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

This added a deceptive layer of credibility. After transferring funds—primarily in USDT—victims were informed their accounts had been frozen.

To retrieve their money, they were told to pay additional taxes or fees. Even after complying, their original investments were never returned, exposing the scam’s exploitative nature.

Crypto Romance Scams: FBI Warns of Increasing Threat

The FBI has long highlighted the growing prevalence of crypto romance scams, especially those targeting older adults.

An FBI report revealed that losses from crypto scams reached $5.6 billion in 2023, with individuals over 60 identified as frequent targets.

Recent examples highlight the severity of these scams. In February, a 37-year-old tech professional from Philadelphia lost nearly $450,000 to a similar scheme promising high returns.

Similarly, a 51-year-old woman reported losses exceeding $22,000 in a separate case last year.

The scammers behind the $5 million scheme used fake personas like “Jeanie” and “Alice” to build rapport and trust.

These carefully constructed identities increased the likelihood of substantial investments from victims.

A University of Texas study estimates that $75 billion has been lost to crypto romance scams between January 2020 and February 2024.

As the FBI continues its investigation, this case highlights the ongoing risks of crypto scams and the need for caution in online interactions.