FBI and DOJ Seize $8.2 Million in Romance Baiting Crypto Fraud Scheme
The U.S. Department of Justice (DOJ) has seized over $8.2 million in cryptocurrency, specifically USDT (Tether), linked to a complex romance baiting scam. The operation was carried out by the FBI and marked a significant victory in the fight against these types of financial crimes.
On February 27, 2025, the U.S. Attorney's Office in Ohio filed a civil forfeiture complaint for $8.2M in USDT linked to a 'romance baiting' scam. The scammers used anonymous messaging apps to deceive victims into fake financial relationships. One Cleveland victim, for example, liquidated her retirement savings and sent over $650K in crypto to a fraudulent investment platform.
"The FBI used blockchain intelligence to trace the flow of funds across multiple platforms and networks — from centralized exchanges, to Ethereum and TRON, through DeFi protocols, and into final storage wallets," reads the report published by the blockchain cybersecurity firm TRM Labs. "Despite complex laundering methods, the investigation revealed common routing patterns and wallet reuse that helped agents piece together the full laundering scheme."
A Romance Baiting Scam: A Manipulative Fraud
A romance baiting scam, also known as a pig butchering scam, is a type of financial fraud in which scammers build trust with victims over time, manipulating them into making large investments in fraudulent schemes. The scammers often use social media or dating apps to establish fake relationships with their targets, before eventually exploiting them financially.
The scam involves emotional manipulation, leaving victims financially devastated and reluctant to report the fraud. According to TRM Labs, the FBI uncovered laundering patterns tied to romance baiting scams, leading to a dual legal forfeiture for wire fraud and money laundering.
A Growing Problem: Pig Butchering Scams
Pig butchering scams are rapidly growing crypto frauds that often connect to human trafficking in Southeast Asia. They exploit vulnerable individuals through financial grooming, causing significant damage. "First employed by Chinese organized crime groups, the particular type of investment fraud scheme detailed below initially targeted victims inside China then expanded worldwide during the global pandemic," reads the complaint.
These criminal syndicates often operate from compounds in Cambodia and Myanmar, forcing human trafficking victims in Southeast Asia to participate in the schemes against their will. The scams take advantage of the ability of cryptocurrency to be transferred securely and globally, without intermediaries and the safeguards established, and inherent to, the traditional financial system.
A Successful Operation: Restitution for Victims
The seizure paves the way for restitution to victims, with the FBI tracing additional victims through seized wallets. The DOJ used dual legal theory to seize $8.2 million: funds tied to fraud were forfeited under wire fraud law, and remaining funds under money laundering law.
This ensures restitution for known and unidentified victims as the FBI continues to investigate and prosecute related cases. "This case underscores how public-private partnerships, sophisticated tracing tools, and smart legal strategies can lead to real-world impact," concludes TRM Labs. "It's not just about seizing crypto — it's about getting justice for victims, many of whom lose their life savings."
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