Eastlake, Ohio – Federal prosecutors in Ohio have filed a civil forfeiture complaint seeking to recover approximately $65,000 in cryptocurrency connected to an alleged investment fraud scheme that cost a Lake County resident nearly $200,000 in savings.
The U.S. Attorney’s Office for the Northern District of Ohio filed the complaint on November 9, 2026, targeting 65,028.09 USDC cryptocurrency tokens valued at approximately $65,028.09.
Federal investigators believe the funds represent part of the money stolen from an Eastlake resident who was persuaded to transfer his savings into cryptocurrency accounts controlled by someone pretending to be a financial adviser.
According to court documents, the suspected fraudster used the name “Jake Williams” while convincing the victim that he could help him make money through cryptocurrency investments.
The investigation eventually uncovered approximately 60 transfers connected to the alleged scheme, with investigators tracing nearly $200,000 to cryptocurrency accounts believed to be controlled by the fraudster.
If the government’s forfeiture request is successful, federal authorities intend to seek the return of the recovered money to the victim.
Unsolicited phone call leads to costly cryptocurrency investment scheme
The case began when the Eastlake resident received an unexpected telephone call from an individual identifying himself as “Jake Williams.”
The caller claimed to be a financial adviser with expertise in cryptocurrency trading.
According to federal court documents, the individual gradually gained the victim’s confidence through manipulation and convinced him to move a substantial amount of money from his retirement savings.
The victim was persuaded to withdraw approximately half a million dollars from his retirement account.
He then transferred part of that money into an account at a local bank before moving additional funds to Coinbase, a cryptocurrency exchange operating in the United States.
The transactions were presented as steps toward making cryptocurrency investments.
However, investigators allege that the person directing the transfers was using the arrangement to gain access to the victim’s money.
Once the funds reached the Coinbase account, the alleged fraudster convinced the resident to allow remote access to his laptop.
That access gave the individual the opportunity to enter the victim’s cryptocurrency account.
According to the complaint, the suspect then transferred money from Coinbase to other cryptocurrency addresses under his control.
The victim believed he was participating in an investment arrangement, but investigators later determined that funds had been moved away from his account.
Victim shown cryptocurrency wallet supposedly worth $860,000
The alleged scheme continued when the individual presented the victim with what appeared to be evidence of substantial investment gains.
The resident was shown a cryptocurrency wallet supposedly belonging to him, with an estimated balance of approximately $860,000.
That amount was presented as including profits generated through the investments.
However, the displayed value did not mean the victim actually controlled or could access those funds.
When the resident attempted to withdraw money, the person using the name “Jake” offered an explanation for why the withdrawal could not be completed.
He claimed that the Internal Revenue Service had frozen the account because the victim’s accountant had failed to file taxes since 2021.
The statement about an IRS freeze was part of the alleged fraudster’s explanation and was not established as a genuine action taken by the tax agency.
Unable to recover his money, the victim eventually reported the suspected fraud to the FBI’s Internet Crime Complaint Center, commonly known as IC3.
The complaint prompted the FBI Cleveland Division to open an investigation into the transactions.
FBI traces nearly $200,000 in losses through cryptocurrency transactions
Federal investigators reviewed financial records and examined transactions recorded on cryptocurrency blockchains to determine where the money had gone.
Their analysis identified approximately 60 transfers associated with the alleged scheme between December 17, 2025, and March 31, 2026.
According to investigators, those transactions resulted in approximately $198,232.92 being transferred into cryptocurrency accounts controlled by the suspected fraudster.
The victim did not receive any of the stolen money back.
Investigators then worked to identify funds that could still be located and potentially recovered.
Of the nearly $200,000 in reported losses, the FBI traced approximately 65,028.09 USDC tokens, worth about $65,028.09, to a cryptocurrency address on the Ethereum blockchain.
USDC is a digital currency issued by Circle Internet Financial.
It is known as a stablecoin because it is designed to maintain a value tied to a traditional currency.
Circle seeks to keep the value of one USDC token equal to one U.S. dollar.
The cryptocurrency operates on several blockchain networks, including Ethereum, where investigators located the funds involved in this case.
Federal authorities secure cryptocurrency before filing forfeiture complaint
After identifying the cryptocurrency address, federal investigators took steps to prevent the funds from being moved.
On May 20, 2026, a U.S. magistrate judge issued a federal seizure warrant covering the 65,028.09 USDC tokens.
The warrant was served on Circle that same day.
Following the action, Circle confirmed that the Ethereum address holding the cryptocurrency had been blocklisted.
The restriction prevented USDC cryptocurrency from being transferred into or out of the identified address.
This action helped secure the funds while federal authorities continued the legal process.
On November 9, 2026, the U.S. Attorney’s Office for the Northern District of Ohio filed its civil forfeiture complaint against the cryptocurrency.
The government is seeking forfeiture of the approximately $65,028.09 connected to the alleged fraud.
A civil forfeiture proceeding allows the government to ask a court to transfer ownership of property believed to be connected to unlawful activity.
The filing itself does not establish that every allegation has been proven, and the court must determine whether the legal requirements for forfeiture have been satisfied.
If prosecutors succeed, the United States plans to seek the return of the recovered funds to the Eastlake victim.
The amount currently targeted represents only part of the approximately $198,232.92 that investigators identified as having been transferred to accounts controlled by the suspected fraudster.
The case illustrates how an alleged investment scheme involving an unsolicited telephone call, remote computer access and misleading claims about cryptocurrency profits can result in substantial financial losses.
Although investigators have traced and restricted approximately $65,000 in cryptocurrency, the victim’s larger reported loss remains unresolved in the information provided by federal authorities.
