Fake Crypto Investment Scam Took $36.9 Million From Americans

An alleged international cryptocurrency investment scheme took more than $36.9 million from at least 174 people in the United States. The case matters because the scammers reportedly found victims through ordinary texts, calls, social media and dating services before steering them toward convincing but fake investment websites.

What happened

According to BleepingComputer, members of the alleged scheme contacted people through unsolicited messages, phone calls, social networks and online dating services. They built trust, promoted supposed digital-asset investments and claimed that victims’ money was increasing in value.

The websites presented to victims reportedly resembled legitimate cryptocurrency trading platforms. But prosecutors said the money was stolen instead of invested. The scammers also used false displays or screenshots to make the supposed accounts appear profitable.

Victims transferred more than $36.9 million from US bank accounts to an account at Deltec Bank in the Bahamas, BleepingComputer reported. Prosecutors allege that the money was converted into the USDT stablecoin and moved to a cryptocurrency wallet controlled in Cambodia. From there, it was distributed to leaders of scam centers in Southeast Asia.

A Chinese national accused of helping move the money was extradited from the Netherlands and appeared in a California federal court. The Record reported that he faces one count of conspiracy to commit money laundering and could receive up to 20 years in prison if convicted. Eight other people charged in the case have pleaded guilty.

Who is affected

The identified victims were Americans approached through channels that many households use every day. A stranger may begin with an unexpected text, a social-media conversation, a phone call or contact on a dating site before introducing an investment opportunity.

The warning signs in this case were not limited to one app or one type of relationship. The common pattern was trust-building followed by a request to put money into a digital-asset service controlled by the scammers.

What to do now

1. Treat an unexpected cryptocurrency investment pitch as a warning, especially when it begins through a text, social-media account, phone call or dating service. Do not send money simply because the person has spent time gaining your trust.

2. Do not open an investment account through a website supplied by the person making the pitch. Prosecutors said the sites in this scheme were designed to look like real cryptocurrency platforms.

3. Do not accept screenshots or an on-screen balance as proof that an investment is growing. The alleged scammers used false displays to make stolen money appear profitable.

4. Before transferring anything, pause and independently examine who controls the website and where the payment is going. A professional-looking page does not prove that a platform is legitimate.

5. If you already sent money, stop making additional transfers. Save the messages, website address, screenshots and bank or cryptocurrency transaction details so you have a clear record of what happened.