US Authorities to Return $8.2 Million to Crypto Scam Victims

US authorities will return $8.2 million seized from fraudsters who acquired the funds through a “wrong number” scheme.

The scammers deceived individuals via text messages, posing as acquaintances who had supposedly sent a message to the “wrong number.” They built trust with the victims before persuading them to invest in fake crypto platforms promising high returns.

According to a statement from the Ohio prosecutor’s office, the FBI identified 33 victims, with five more remaining unknown. Total losses are estimated at $6 million.

Prosecutors reported that the fraudsters’ accounts “contained additional funds exceeding the victims’ losses,” totaling $8.2 million, suggesting possible involvement in money laundering.

The investigation commenced in June 2024, when one victim contacted the FBI’s Internet Crime Complaint Center. Blockchain analysis helped trace some of the stolen funds. The assets were converted into USDT stablecoins and transferred to three crypto wallets.

Law enforcement obtained a warrant to seize the cryptocurrency. Subsequently, USDT issuer Tether froze the funds and moved them to a wallet under government control.

The scammers also employed emotional pressure tactics. One victim, a woman from Ohio, lost her entire savings of $663,000, and when she refused to transfer additional funds, she and her family were threatened with physical harm.

Earlier in 2024, losses from crypto industry fraud amounted to at least $9.9 billion, according to Chainalysis analysts.