$2.5 Million Cryptocurrency Scam Exposed: Nigerian Suspect Faces 40 Years in US Prison
A global romance scam that used cryptocurrency to hide money flows has been busted by US authorities. The main suspect – a Nigerian citizen – is currently in custody and could face up to 40 years in prison if convicted.
DoJ indicts suspect running transnational fraud scheme
On April 9, the US Department of Justice (DOJ) announced the arrest of Charles Uchenna Nwadavid, 34, at Dallas-Fort Worth International Airport upon his arrival from the UK. According to the indictment, from 2016 to 2019, Nwadavid was behind a sophisticated romance scam that targeted victims in multiple states across the US, particularly those who were vulnerable online.
To carry out the fraud, the suspect allegedly created a fake online identity, pretended to develop a romantic relationship with the victims, and then manipulated them into sending money — not only their own but also other people’s money — to a cryptocurrency wallet that he secretly controlled.
One of the victims — a woman living in Massachusetts — unwittingly became a “financial intermediary,” transferring money from five other individuals to the suspect, believing she was helping a loved one.
Hiding behind the Cryptocurrency Mask
The DOJ said Nwadavid used the Localbitcoins platform to launder the money he received, converting fiat payments into digital assets to cover his tracks. He also remotely accessed financial accounts opened in the victims’ names to control the flow of money from overseas.
The DOJ asserted that the use of cryptocurrency made it easier for the suspect to move assets across borders without immediate detection, complicating the investigation.
Multiple felony charges
In January 2024, a federal grand jury in Boston formally indicted Nwadavid on charges including mail fraud and money laundering. After his initial appearance in federal court in Texas, the suspect remains in custody and will soon be extradited to Massachusetts for further proceedings.
According to the DOJ, mail fraud carries a maximum sentence of 20 years in prison, along with a fine of $250,000 or twice the victim's loss. Meanwhile, money laundering carries a similar penalty, with a maximum sentence of 20 years in prison, along with a fine of $500,000 or twice the value of the laundered assets.
Warning about the risks of virtual relationships
This case is a clear reminder of the sophistication and danger of digital romance scams. In the context of the increasing popularity of cryptocurrencies, criminal organizations are increasingly taking advantage of technology to hide their activities and exploit the gullibility of online users.
Authorities recommend that people be cautious with online relationships, especially when they involve financial requests or cryptocurrency transactions. While the law is tightening on digital money laundering, public vigilance remains the first and most important line of defense.