Summary:
$400,000 lost in a cryptocurrency scam by an Elyria man.
Scammers used Tether to launder the stolen money.
Victim and his wife now depend on Social Security and family support.
FBI investigates similar scams across Northeast Ohio.
Scam began with a fake alert on the man's Macbook.
A Heartbreaking Loss
CLEVELAND, Ohio — An elderly Elyria man has tragically lost over $400,000 in a cryptocurrency scam, as reported by federal prosecutors. The scammers exploited crypto giant Tether to launder the stolen funds, leaving the man and his wife reliant on Social Security and family assistance.
The Details of the Scam
Investigators have taken action, seizing the cryptocurrency and requesting a federal judge to approve its return through civil forfeiture. The case is currently assigned to U.S. District Judge Pamela Barker.
The investigation revealed that the $408,000 taken from the Elyria man was traced to accounts containing an additional $539,000 of stolen or laundered cryptocurrency. Prosecutors are seeking to forfeit a total of $947,000 to the government.
How the Scam Worked
The FBI is actively investigating similar scams across Northeast Ohio and the country. The scams often begin with phone calls, text messages, or social media communications. In this case, the Elyria man received a warning on his Macbook indicating that his laptop was compromised, prompting him to call a phone number.
The scammers impersonated Apple employees, misleading the man into believing he had lost over $80,000 to a foreign thief. After gaining his trust, they instructed him to provide remote access to his computer to help secure his funds.
The Transfer of Funds
Following this, the scammers transferred money from the man's bank account to a virtual currency account and subsequently moved it to various cryptocurrency wallets. Fortunately, Tether temporarily froze these wallets while authorities sought legal approval for seizure.
This incident underscores the ongoing epidemic of cryptocurrency scams and the necessity for vigilance against fraudulent schemes. In a related case in October, prosecutors sought to seize $200,000 in stolen cryptocurrency from another victim in Ashtabula.
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