- A Minnesotan has been swindled in one of the largest romance scams in the U.S., losing over $9 million in cryptocurrencies
- The scam involved the victim making significant investments into a purported web3 company, only to discover the funds were sent to encrypted wallets controlled by the scammers.
- Authorities are investigating the case, which is one of four cryptocurrency frauds reported in Eden Prairie this year
A Minnesota man was duped into sending over $9 million in cryptocurrencies to a romance scammer in one of the biggest such swindles known to date. The unnamed victim, who hailed from Twin Cities but lived in Eden Prairie, connected with a stranger on LinkedIn and was lured into making massive investments into a purported web3 company, with the scammer promising him something more than just financial incentives in return. However, the scam was unearthed when the operators demanded $2.8 million to unlock the returns the victim had ‘made’.
Victim Was Emotionally Manipulated
The elaborate scheme, which was documented in a search warrant affidavit filed by an Eden Prairie police detective, revealed a slippery slope of disappearing funds over a six-month period, from December 21 to June 8.
The victim was enticed to deposit significant sums from his U.S. Bank account into other bank accounts, purportedly for cryptocurrency investments, with the scammers using typical romance scam tactics to hook in the unsuspecting victim. However, the funds never made it to the promised investments but instead went into encrypted wallets controlled solely by the scammers.
The victim believed he was investing in a company named Coinrule-web3 and initially saw some returns. However, as the scam unfolded, the scammers demanded a staggering $2.8 million fee to release more of the alleged profits. The man’s wife finally became aware of the situation when he urgently requested her to withdraw all their remaining assets to pay the fee.
Upon investigation, authorities discovered that Coinrule-web3 was connected to multiple cryptocurrency and romance scams, and one of the banks that received the deposits was known for laundering stolen money. The loss incurred by the victim amounted to $9.2 million in a total of 21 transactions, marking one of the largest cryptocurrency fraud cases in the district.
Romance Scams on the Rise
Cryptocurrency scams, and romance scams especially (also called ‘pig butchering scams’, have become increasingly prevalent, leaving victims devastated and grappling with significant financial losses. Although police are currently working on the case, no updates on arrests or charges have been disclosed yet.
The Eden Prairie police confirmed that this was one of four cryptocurrency fraud cases they had investigated in the current year, indicating a growing concern for the rising trend of these sophisticated scams. The FBI echoed similar experiences in their assessment of cryptocurrency fraud cases, where victims are often drawn in through a mix of financial promises and emotional manipulation.
