Elyria, Ohio – The United States Attorney’s Office for the Northern District of Ohio (USAO) has filed a civil forfeiture complaint involving 947,883 Tether (USDT) cryptocurrency, valued at approximately $947,883. The case revolves around a cryptocurrency fraud scheme that cost an Elyria man his entire life savings of $425,000.
How the Scam Unfolded
The scam began in October 2023 when the victim encountered a pop-up window on his computer instructing him to call a specific number to address a supposed technical issue. Upon calling, the victim was informed that his retirement account had been compromised, with funds allegedly being wired to accounts in China, Russia, and a Las Vegas casino.
The scammers offered a purported solution, convincing the victim to grant them remote access to his computer. Believing he was protecting his retirement account, the victim followed their instructions, which allowed the scammers to withdraw funds and transfer them into various cryptocurrency accounts. Ultimately, the victim lost his entire life savings, totaling $425,000, to the scheme.
Law Enforcement Recovers Stolen Cryptocurrency
Using blockchain analysis, investigators traced the stolen funds, which had been converted into USDT cryptocurrency and deposited into a virtual currency wallet. On July 31, 2024, law enforcement executed a federal seizure warrant and successfully recovered 947,883 USDT tokens, which were then transferred to a law enforcement-controlled wallet.
Legal Actions for Forfeiture and Victim Compensation
On November 26, 2024, the USAO filed a civil complaint in forfeiture seeking to formally forfeit the recovered cryptocurrency. If the United States succeeds, the forfeited funds will be used to provide compensation to the victim.
The complaint alleges that the additional cryptocurrency contained in the wallet is the proceeds of fraud. However, the claims in the complaint are currently allegations and must be proven in court by a preponderance of the evidence.
Ongoing Efforts Against Cryptocurrency Fraud
The FBI Cleveland Division is actively investigating cryptocurrency fraud schemes targeting victims nationwide, including in the Northern District of Ohio. The USAO credited Tether for its assistance in this case and reiterated its commitment to holding fraudsters accountable.
Reporting Fraud Against Older Adults
The USAO emphasized the importance of reporting fraud, particularly scams targeting older adults. If you suspect fraudulent activity, contact the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). Additionally, you can report suspected fraud through the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
This case highlights the growing threat of cryptocurrency fraud and underscores the importance of vigilance when dealing with online transactions and unsolicited technical support claims.
