Federal prosecutors in North Carolina are moving to confiscate nearly $5 million in Tether (USDT) recovered from unhosted wallets linked to a sophisticated cryptocurrency romance scam. The funds, seized under a search warrant in August, are currently held by the U.S. Marshal Service, according to a report by the Triangle Business Journal.
The FBI revealed that at least 71 individuals fell victim to the scam, including a 60-year-old from North Carolina and an 83-year-old from Minnesota. Fraudsters, posing as romantic interests on platforms like WhatsApp, lured victims into investing in a fake trading platform called Bitkanant, which mimicked the legitimate Singapore-based Bitkan exchange. Victims transferred USDT to wallets controlled by the scammers, believing they were making lucrative investments.
Once funds were deposited, victims were informed that their accounts had been frozen, and withdrawals required payment of additional fees or taxes. Despite complying, victims were unable to recover their money. The fraudulent website was taken down shortly after the scam concluded.
Court filings indicate scammers used aliases such as “Jeanie” and “Alice” and fabricated stories, including one about an algorithm created by a fictional uncle that could predict Bitcoin prices. Two victims alone suffered losses exceeding $2.75 million.
The investigation is ongoing, but no arrests have been made.
This case demonstrates the FBI’s increasing concern over cryptocurrency scams, which have led to multiple warnings issued by the agency. Recently, the Bureau exposed a $30 million fraud linked to a fake cryptocurrency education app, ICHCoin, which targeted U.S. investors. FBI Houston’s Amanda Culver emphasized the devastating impact of these schemes, noting that many victims lost their life savings.
The agency urged individuals to remain vigilant and verify the legitimacy of online investments and relationships to avoid falling prey to similar scams.
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