TLDR
- US authorities are returning $8.2 million in seized crypto to victims of “wrong number” scam
- Scammers contacted victims via texts, built trust, then convinced them to invest in fake platforms
- 33 identified victims lost approximately $6 million, with 5 more victims still to be identified
- An Ohio woman lost her life savings of $663,000 and received threats against family when unable to send more money
- Tether froze the fraudulent accounts and transferred funds to law enforcement for victim restitution
US authorities are working to return $8.2 million in cryptocurrency to victims of a sophisticated “wrong number” scam.
The funds were frozen and seized from three cryptocurrency addresses linked to fraudsters who had targeted random phone numbers with misleading messages.
The scheme began with scammers sending text messages to random people, pretending to have contacted the wrong person. After this initial contact, the scammers would build relationships with victims over time. They gained trust through regular conversations about shared interests.
The FBI has identified 33 people who fell victim to this scam so far. Another five victims remain unidentified. Total losses from the scheme amount to approximately $6 million, according to a February 28 statement from the Ohio District Attorney’s office.
Investigators started looking into the case after a victim filed a complaint with the FBI’s Internet Crime Complaint Center in June. Through blockchain analysis, they discovered that a portion of the stolen money had been converted to Tether (USDT) and moved to three cryptocurrency addresses.
Federal authorities obtained a seizure warrant for the funds. Tether then froze the accounts and moved $8.2 million to a wallet controlled by law enforcement. The money has remained there while legal proceedings continue.
Acting US Attorney for Ohio Carol Skutnik and Assistant US Attorney James Morford filed a forfeiture complaint on February 27. They are asking the court to officially forfeit all funds in the three addresses. This would allow authorities to return the money to victims.
The complaint notes that the seized accounts “contained additional funds above the victims’ traceable losses.” These extra funds were allegedly used in money laundering and wire fraud activities.
The Scam
Court documents reveal how the scam worked in detail. Fraudsters would start by sending seemingly harmless messages through text, dating apps, or professional networking groups. After establishing contact, they would build emotional connections with victims.
Once trust was established, the scammers would share stories about their supposed success with cryptocurrency investments. These personal stories helped reduce victims’ doubts about virtual currencies. The tactic worked to convince many victims to invest.
The fraudsters would then guide victims through creating legitimate accounts on established cryptocurrency exchanges like Coinbase or Crypto.com. They walked victims through transferring money from their bank accounts to these new crypto accounts. Victims were then instructed to transfer their purchased cryptocurrency to what they thought were investment platforms.
These platforms were actually fake websites created by the scammers. The sites promised high returns to encourage victims to invest more money. Once victims transferred their funds to these fake platforms, they unwittingly gave control of their money to the scammers.
One case involved a woman from Mentor, Ohio who lost her entire life savings. After responding to a wrong number text in November 2023, she began sharing information with the person. They bonded over topics like hobbies and religion.
Following instructions from her new “friend,” she opened a Crypto.com account and transferred funds. When she later tried to withdraw her money, the scammer claimed she needed to make additional payments. After losing $663,352, including her Roth IRA funds, she could not send more money.
The scammers then allegedly threatened to harm her friends and family. This prompted her to file a complaint with the FBI, which led to the investigation.
The FBI Cleveland Division is leading the investigation into these cryptocurrency fraud schemes. If successful in the forfeiture action, the United States will work to return the stolen funds to all identified victims.
Blockchain analytics firm Chainalysis has warned that advances in generative AI are making scams more scalable and cheaper for criminals. This could lead to record losses throughout 2025. Onchain security firm Cyvers reports that “pig butchering” scams like this one are among the biggest threats to crypto investors, with losses in the billions across 200,000 identified cases in 2024.
Authorities recommend that people who observe potentially fraudulent activity involving older adults contact the National Elder Fraud Hotline at 1-833-FRAUD-11 or visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov to report it.
