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The Federal Bureau of Investigation (FBI) has been looking into a $5 million cryptocurrency romance scam since August, affecting 71 victims through deceptive investment schemes.
Court filings indicate that fraudsters utilized counterfeit social media accounts to entice individuals into a bogus trading platform called Bitkanant.
FBI Investigates $5 Million Crypto Romance Scam and Confiscates Tether
Reports indicate that the investigation intensified in August when federal prosecutors in North Carolina executed a search warrant, resulting in the confiscation of over $4.99 million in unhosted Tether (USDT) wallets.
The seized funds, now under the custody of the U.S. Marshal Service, represent only a fraction of the scam’s extensive reach, with victims located nationwide.
JUST IN: The FBI investigates crypto scammers posing as romantic partners, swindling $5M through fake investments. pic.twitter.com/kdr2GJO8FG
— Coinwaft (@coinwaft) November 19, 2024
Among those affected are a 60-year-old resident of Angier, North Carolina, and an 83-year-old from Minnesota, both drawn into the scheme with assurances of profitable cryptocurrency investments.
Scammers masqueraded as romantic interests on platforms such as WhatsApp, gradually establishing trust with victims over weeks or months before persuading them to invest.
Victims were directed to Bitkanant, a fraudulent platform crafted to resemble the legitimate Singapore-based exchange, Bitkant.
This added a misleading layer of authenticity. After transferring funds—mainly in USDT—victims were informed that their accounts had been frozen.
To recover their funds, they were instructed to pay additional taxes or fees. Even after compliance, their initial investments were never returned, revealing the exploitative nature of the scam.
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Crypto Romance Scams: FBI Alerts on Rising Threat
The FBI has consistently emphasized the increasing occurrence of crypto romance scams, particularly those targeting older individuals.
While you’re searching for love, scammers are searching for you. If your “ideal match” begins requesting you to invest in #crypto, it’s likely they’re attempting to deceive you. Safeguard your heart and your finances by learning to identify this prevalent scam at https://t.co/lwjyQnYQUy pic.twitter.com/9WP9cZoHrT
— FBI (@FBI) September 13, 2024
An FBI report disclosed that losses from crypto scams reached $5.6 billion in 2023, with individuals over 60 recognized as frequent targets.
Recent instances underscore the seriousness of these scams. In February, a 37-year-old technology professional from Philadelphia lost nearly $450,000 to a similar scheme that promised high returns.
In another case last year, a 51-year-old woman reported losses exceeding $22,000.
Philadelphia woman was finessed out of $450,000 after meeting a man on the dating site “Hinge” & convincing her to put her cash into cryptocurrency. pic.twitter.com/5k1gbjvVsX
— SAY CHEESE!
(@SaycheeseDGTL) June 27, 2023
The fraudsters behind the $5 million scheme adopted fake identities such as “Jeanie” and “Alice” to cultivate rapport and trust.
These meticulously crafted personas heightened the chances of significant investments from victims.
A study from the University of Texas estimates that $75 billion has been lost to crypto romance scams from January 2020 to February 2024.
As the FBI continues its investigation, this case underscores the persistent dangers of crypto scams and the necessity for vigilance in online interactions.
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