US Seeks $456,602 in Crypto Linked to Alleged Romance Fraud

Federal prosecutors in Massachusetts are seeking forfeiture of 456,602 USDT, valued at approximately $456,602, allegedly linked to romance fraud targeting people on dating sites and Facebook. The U.S. Attorney’s Office announced the civil action on Nov. 9, saying authorities had traced the funds to two cryptocurrency wallets and seized them.

According to the complaint, the alleged perpetrators built trusting relationships online before encouraging victims to invest in cryptocurrency through fake platforms. Victims believed their deposits were generating profits, but prosecutors say the money instead went to wallets not hosted by cryptocurrency exchanges.

The alleged deception became apparent when withdrawals failed, including after additional payments described as fees and taxes. That sequence placed the apparent investment returns beyond victims’ reach while exposing them to further demands for money, according to the account released by prosecutors.

The case reflects a broader fraud pattern described by the FBI, in which an online relationship becomes the gateway to an investment pitch. In its cryptocurrency investment fraud guidance, the bureau says criminals can coach targets through transfers and use fabricated profits to encourage increasingly large deposits.

The distinction between an account display and accessible money is central to these schemes. Federal investor guidance warns that fraudulent services may show convincing trading information or allow small early withdrawals to build credibility. Neither apparent profits nor a successful initial withdrawal establishes that an investment platform is legitimate.

Requests for additional payments can extend the losses after a victim tries to cash out. The FBI says purported withdrawal taxes and fees are another way to extract money, rather than a reliable route to releasing funds. It advises suspected victims not to send further payments to unlock an account.

The Massachusetts proceeding concerns recovery of assets, and the allegations in the complaint have not been established as findings of fact. Prosecutors said property traceable to wire fraud, as well as property involved in transactions designed to conceal criminal proceeds, can be subject to forfeiture under federal law.

For victims, seizure and repayment are separate stages. Prosecutors said third parties may assert ownership claims in the civil proceeding, and those claims must be resolved before the cryptocurrency can be forfeited and returned. The announcement therefore does not mean compensation has already been distributed or establish how much any individual might receive.

The recovery process also carries a separate risk for people who have already lost money. The FBI warns that supposed recovery specialists may impersonate law enforcement, companies or lawyers and request payment while falsely promising to retrieve stolen cryptocurrency. The bureau urges suspected investment-fraud victims to stop sending money and report the matter to its Internet Crime Complaint Center.

The next step in the Massachusetts case is resolution of the forfeiture proceeding and any competing claims to the seized assets. Prosecutors framed that process as necessary before funds can be returned to victims, leaving the timing and outcome of any repayment dependent on further legal steps.