U.S. Prosecutors Highlight Crypto-Linked Romance Scams
- Prosecutors warn that scammers often move conversations to encrypted apps like WhatsApp or Telegram before requesting crypto payments.
- Schemes build trust over weeks or months, sometimes allowing small withdrawals to encourage larger deposits.
- Frauds are linked to Southeast Asian crime networks laundering stolen crypto through shell accounts and luxury assets.
- In December, a widow from San Jose lost nearly $1 million in a pig-butchering scam confirmed as fraud via ChatGPT.
- The Justice Department seized $225 million in Tether’s USDT stablecoin related to pig-butchering fraud, the largest crypto forfeiture of its kind.
U.S. prosecutors caution that Valentine’s Day is peak season for romance scams tied to crypto fraud, urging vigilance against these long-form cons that exploit emotional and financial vulnerabilities.
These scams often involve fake investment platforms showing inflated returns, with scammers blocking withdrawals using fabricated charges or technical issues after securing larger deposits from victims.(Source)
