U.S. to Return $8.2M in Crypto Seized from Elaborate “Wrong Number” Scam

U.S. authorities are working to return $8.2 million in seized cryptocurrency to victims who fell prey to an elaborate scam that began with a simple “wrong number” text. According to the Ohio District Attorney’s office, scammers used deceptive messages to build relationships with unsuspecting victims before convincing them to invest in fraudulent crypto schemes.

The FBI has identified 33 victims so far, with five more yet to be identified. Total losses stand at $6 million, with some victims losing their entire life savings. The funds were traced through blockchain analysis after a complaint was filed with the FBI’s Internet Crime Complaint Center in June. A portion of the stolen funds had been converted to Tether (USDT) and transferred to three cryptocurrency addresses.

Once investigators secured a federal seizure warrant, Tether froze the funds and moved them to a law enforcement-controlled wallet. The authorities have since filed a forfeiture complaint in an Ohio District Court, seeking approval to return the recovered assets to victims.

How Scammers Exploited Victims’ Trust

Court documents reveal that fraudsters contacted victims through text messages, dating apps, and networking platforms, pretending they had mistakenly messaged the wrong person. From there, they built trust and emotional connections through ongoing conversations, eventually steering victims toward a supposed investment opportunity.

“The fraudster gained the victim’s trust using various manipulative tactics,” U.S. Attorneys Carol Skutnik and James Morford stated in their complaint. “Once trust was established, they shared fabricated success stories about cryptocurrency investments.”

To appear legitimate, scammers guided victims through opening accounts on real crypto exchanges but directed them to deposit funds into fake investment platforms they controlled. These fraudulent platforms displayed fake profits, encouraging victims to invest more.

In one case, an Ohio woman lost $663,000—her entire savings. When she was unable to send more money, the scammers threatened harm to her family and friends unless she made additional payments.

Crypto Scam Cases Evolving with AI

The rise of generative AI is making fraud more scalable and deceptive, according to a February Chainalysis report. Meanwhile, on-chain security firm Cyvers warns that “pig butchering” scams—where victims are manipulated over long periods—are among the biggest threats to crypto investors. So far in 2024, over 200,000 cases have been identified, with billions lost to scams.

As crypto scams become more sophisticated, authorities are ramping up efforts to trace and recover stolen assets—offering a glimmer of hope to those who have fallen victim to digital fraud.