TLDR

• US authorities seized $8.2 million in crypto from scammers who used “wrong number” texts to befriend and defraud victims, with plans to return funds to 38 identified victims
• Scammers used a sophisticated trust-building approach, starting with misdirected messages before promoting fake crypto investments
• An Ohio woman lost $663,000 in life savings and received threats to her family when unable to send more money
• Authorities found the stolen funds were converted to Tether and transferred to three cryptocurrency addresses, which were later frozen
• The total victim losses reached $6 million, with additional funds found in the seized accounts believed to be linked to money laundering

US authorities have seized $8.2 million in cryptocurrency from a fraud operation that used fake wrong number text messages to target victims. The funds will be returned to 38 identified victims, according to a February 28 statement from the Ohio District Attorney’s office.

The investigation began after a victim filed a complaint with the FBI’s Internet Crime Complaint Center in June. Through blockchain analysis, investigators tracked stolen funds that had been converted to Tether and transferred to three cryptocurrency addresses.

The scam started with messages sent to random phone numbers pretending to have the wrong recipient. Scammers used text messages, dating applications, and professional meet-up groups to make initial contact with potential victims.

After establishing contact, the fraudsters worked to build trust with their targets. They used various manipulation tactics to create friendships and gain the victims’ confidence over time.

Once trust was established, the scammers began sharing stories about cryptocurrency investment success. They told victims about their own supposed profits or those of people they knew.

The fraudsters guided victims through setting up legitimate cryptocurrency exchange accounts. They then convinced victims to transfer funds to a fake investment platform under their control.

The fake platform showed victims false profits to encourage additional investments. Victims were led to believe their money was growing and that they could withdraw it at any time.

The Victims’ Stories

One Ohio woman lost her entire life savings of $663,000 to the scam. When she could not send more money, the fraudsters threatened to harm her friends and family.

The FBI has identified 33 victims of the scam so far. They are still working to identify five more victims, with total losses reaching $6 million.

After authorities obtained a federal seizure warrant, Tether froze the funds in the scammers’ accounts. The cryptocurrency was then transferred to a wallet controlled by law enforcement.

Acting US Attorney Carol Skutnik and Assistant US Attorney James Morford filed a forfeiture complaint on February 27. They requested court approval to return the seized funds to the victims.

The seized accounts contained more money than the traced victim losses. Authorities found $8.2 million in total, with the additional funds linked to money laundering and wire fraud.

Blockchain security firm Cyvers reports that this type of scam, known as “pig butchering,” has become a major threat. They identified 200,000 cases in 2024 with losses in the billions.

Security experts at Chainalysis warn that artificial intelligence is making such scams easier to operate. Their February 13 report suggests that scam losses could reach record levels in 2025.

The case remains active as authorities work to identify remaining victims and process the return of seized funds.