U.S. Attorney warns of rising cryptocurrency scams using fake investment platforms

WASHINGTON (7News) — Over $800,000 in cryptocurrency was recovered after a cryptocurrency confidence scheme, Officials said.

The $868,247 was recovered from officers with the Computer Crime and Intellectual Property Section and the FBI, said U.S. Attorney Jenine Pirro.

Scammers begin by targeting victims with seemingly misdirected texts, dating apps, or professional networking or investment groups. Next, the scammers manipulate the victim to gain trust in order to get the victim to invest in cryptocurrency, said Pirro.

ALSO READ | TRAFFIC ALERT: Road closures for 2025 Rolling to Remember motorcycle demonstration in DC

A common way scammers get the money is to send a victim a fake investment platform that mimics legitimate platforms. The scammer helps the victim open a cryptocurrency account and helps transfer money from a bank into that fake cryptocurrency account, Pirro said.

At first, the fraudulent platforms often show lucrative returns, to make victims add more money. In reality, all deposited funds are controlled completely by the scammers. Sometimes, the platform allows victims to withdraw money, but they will eventually be unable to recover they money and get locked out of their accounts–losing all they invested, said Pirro.

Victims of cybercrimes – including cryptocurrency scams, romance scams, and investment scams – may contact the FBI’s Internet Crime Complaint Center.