US Authorities Seize $8.2 Million in Crypto from ‘Wrong Number’ Scam to Return to Victims

US authorities have seized $8.2 million in cryptocurrency linked to a widespread scam involving fraudulent messages and fake investment schemes. The funds were frozen and moved to law enforcement-controlled wallets, and efforts are now underway to return the money to the victims of this multi-million-dollar fraud operation.

The scam targeted individuals through deceptive "wrong number" messages sent via text, dating apps, and professional networking platforms. The fraudsters would pose as accidental contacts, then gradually build trust with the victim before convincing them to invest in a fake cryptocurrency scheme.

A Con That Preyed on Trust

According to a statement from the Ohio District Attorney’s office on February 28, 33 individuals have been identified as victims of the scam, with a further five victims still to be identified. The total losses are estimated at $6 million, but authorities believe the total amount involved could be higher due to the scale of the operation.

The FBI’s investigation began in June after a victim reported the scam to the Internet Crime Complaint Center. Through blockchain analysis, investigators traced the stolen funds to three cryptocurrency addresses. These funds were converted into Tether (USDT) and transferred to the scam addresses, where they remained until authorities executed a federal seizure warrant.

Following the seizure, Tether froze the funds and transferred them to a law enforcement wallet. The funds have remained under control since the seizure, awaiting the court's decision on the forfeiture.

The Scam’s Tactics: Gaining Trust Through Deception

The scam operated in stages, beginning with messages from scammers pretending to have dialed the wrong number. These messages were sent to random phone numbers through various platforms, including text messaging services, dating applications, and professional meet-up groups. After the initial contact, the scammer would proceed to gain the victim's trust using manipulative tactics.

Once the fraudster had built enough rapport, they would share stories about the success they or others had found by investing in cryptocurrency. This personal testimony was often enough to quell any doubts the victim might have had about virtual currencies, leading them to believe in the legitimacy of the scam.

Victims were then guided through the process of opening legitimate cryptocurrency exchange accounts, only for them to be tricked into transferring funds to fake websites controlled by the fraudsters. The scammers assured victims of high returns on their investments, urging them to invest even more money.

Devastating Consequences for Victims

The emotional and financial toll of the scam was severe for many victims. One case, involving an Ohio woman, stands out. The woman lost her life savings, totaling $663,000, after being convinced to send more and more money to the scammers. When she could no longer afford to send additional funds, the fraudsters allegedly threatened her family, demanding more money or else harm would come to her loved ones.

Crypto Scams on the Rise: A Growing Threat

Blockchain analytics firm Chainalysis warned in its 2024 Crypto Scam Revenue report that generative AI is making scams like this more scalable and affordable for bad actors, potentially leading to record-breaking losses in 2025.

Additionally, on-chain security firm Cyvers highlighted that "pig butchering" scams — a form of social engineering that mimics romance scams — are emerging as one of the largest threats to crypto investors. These scams have already resulted in billions of dollars in losses across 200,000 identified cases in 2024 alone.

Moving Forward: Efforts to Return Seized Funds

The Ohio District Attorney’s office, led by acting US Attorney Carol Skutnik and assistant US Attorney James Morford, filed a forfeiture complaint in an Ohio District Court on February 27, requesting that the $8.2 million in seized funds be returned to the victims. In the complaint, Skutnik and Morford noted that the accounts contained additional funds beyond traceable losses, suggesting the money was involved in money laundering and wire fraud.

Authorities are now working to return the seized funds to the victims of the scam, a process that is expected to be completed once the court approves the forfeiture.

A Warning to Crypto Investors

The case serves as a stark reminder of the risks associated with unregulated crypto investments and the importance of due diligence. The FBI, alongside other regulatory bodies, continues to warn the public about the dangers of fraudulent crypto schemes and encourages individuals to be cautious when approached with unsolicited investment opportunities.

As the cryptocurrency market continues to grow, scams like these are likely to increase, making it essential for investors to stay vigilant and recognize the warning signs of fraud.