The US FBI is investigating a crypto scam worth $5 million where the alleged suspect posed as the love interest of people to ultimately fraud them of crypto money.
According to a Triangle Business Journal article, federal prosecutors in North Carolina are attempting to collect more than $4.99 million that was discovered from unhosted Tether (USDT) wallets connected to a complex cryptocurrency romance fraud.
The discovery of the scam comes at a time when the US FBI has been keeping a strict watch on the crypto sector in order to curb scams. With the advancement in the crypto sector, the types and forms of crypto scams have also changed, making lawmakers worried about the rise in scams and money laundering cases.
Crypto Love Scam Worth $5 Million Busted
The modus operandi of the crime was quite simple. To gain victims’ trust, con artists pose as possible love partners in romance scams, also known as pig butchering scams. The scammers disappear after tricking the victims into investing in phony cryptocurrencies.
Usually, the cryptocurrencies that are marketed in these scams are fake and not original. At present, the US Marshal Service possesses all the funds that were recovered in the scam.
Crypto Scams Rise Amid Surging Hype Of Digital Assets
The US FBI had reported that losses from cryptocurrency-related frauds and scams rose by 45% in 2023 compared to 2022, amounting to over $5.6 billion, as con artists increasingly exploited the speed and irreversibility of transactions involving digital assets.
The sophistication of scams has increased and so has the will of many to invest in riskier assets. Convincing an investor to move cryptocurrencies to a new site, where the fraudster establishes credibility by posting fictitious high profits is a prevalent scam tactic.
According to data, 71% of all cryptocurrency-related losses in the previous year were from investment schemes with a connection to cryptocurrencies, according to the research.
Out of all the scams that happen in the sector, North Korean hackers have been responsible for most of the industry’s intrusions. Furthermore, North hackers are using novel methods to commit cryptocurrency fraud. Phishing and virus schemes have been added to the long list of methods used by hackers in the DPRK to steal Bitcoin.
According to the FBI, although cryptocurrency transactions are documented on publicly accessible blockchains, which make it simple for law enforcement to track down money, money is frequently transferred swiftly outside, where U.S. agents may run into issues like weak anti-money laundering regulations in some countries.