State police recover $180K stolen from CT resident in international cryptocurrency scheme
State police have recovered $180,000 in cryptocurrency that was returned to a Connecticut resident who was duped into sending someone nearly a quarter of $1 million as part of an international investment fraud scheme.
The victim, a Willimantic resident, was lured into the scheme in July when they received unsolicited text messages from an individual claiming to be a successful cryptocurrency investor, according to Connecticut State Police.
State police said the scammer used “sophisticated social engineering tactics” to convince the victim into transferring $225,000 into a fraudulent investment platform called “XeggeX.” The scammer then disappeared with the funds, according to state police.
The incident was investigated by the state police Eastern District Major Crime Squad and Bureau of Special Investigations’ Statewide Organized Crime Investigative Task Force. They operated as part of the State Police Cryptocurrency Working Group.
State police said investigators collaborated with a compliant cryptocurrency exchange platform and were able to intercept and recover about 1.77 Bitcoin from the fraudulent wallet address. The funds were returned to the victim on Feb. 12 in accordance with a court order.
State police noted that schemes like this, sometimes referred to as “pig butchering” scams, are part of a larger transnational organized crime operation that has led to more than $75 billion in losses globally.
“These scammers are operating sophisticated fraud factories across Southeast Asia, targeting victims worldwide, including here in Connecticut,” state police said in a statement.
State police are warning residents to be on the lookout for red flags that could be indicative of a scam including unsolicited investment advice through text messages or social media. Scammers often pressure victims into moving conversations to other messaging apps like WhatsApp and make claims of guaranteed high returns with no risk, state police said.
State police said scammers also sometimes mix “romantic manipulation” with investment pressure and request money be transferred through cryptocurrency. Investigators also warn to be on the lookout for “professional-looking investment platforms” without a point of contact.
Anyone who believes they have fallen victim to this sort of scheme is encouraged to report it as soon as possible to the Virtual Currency Working Group at csp.virtualcurrency@ct.gov or a local police department.
Originally Published: February 14, 2025 at 5:00 AM EST