US Seizes Nearly $900,000 in Cryptocurrency from Sophisticated Dating Scam

DOJ Continues to Crack Down on Online Fraud Schemes, Recovers Millions from Fake Investment Platforms

The U.S. Department of Justice (DOJ) said on May 23 that federal agents seized more than $868,000 in cryptocurrency as part of an investigation into a large-scale romance scam. The perpetrators used dating apps and social media to lure victims into investing in fake digital asset platforms with the promise of huge returns.

The investigation, conducted by the FBI’s Honolulu Field Office, found fraudulent websites designed to mimic legitimate investment platforms, displaying fake returns to entice investors. According to the DOJ, scammers often pose as acquaintances or dates, building trust and gradually convincing victims to transfer money.

“On the surface, these platforms appear legitimate and profitable. But in reality, all of the money sent by victims is transferred to cryptocurrency wallets controlled by the criminal group,” the DOJ warned.

Some victims were initially allowed to withdraw a portion of their “profits” to build trust, but then gradually had difficulty withdrawing more money, receiving unclear reasons for delays, before being completely locked out of their accounts and losing all their assets.

The DOJ also said that Tether (USDT) played a role in the asset recovery process, assisting in transferring the seized funds to the authorities.

The DOJ urged anyone who has been scammed in a similar manner to promptly report the incident to the FBI’s Internet Crime Complaint Center (IC3).

Additionally, also on May 23, the DOJ announced that it had recovered approximately $2.5 million in additional cryptocurrency related to similar scams, in a separate investigation conducted by the FBI's San Diego office.