The FBI has revealed that Americans aged 60 and above are the most frequent victims of cryptocurrency scams, losing more money than any other age group. A federal judge has stepped in, ordering the forfeiture of around $2.5 million worth of cryptocurrencies stolen through these deceptive schemes, according to the Department of Justice (DOJ). This order was issued by U.S. District Court Judge Amir H. Ali as part of efforts to recover funds swindled via these scams and return them to the rightful owners.
These confidence scams typically start with scammers reaching out to potential victims through what appear to be accidental text messages, dating apps, or professional meetups. Over time, they build trust using various manipulative strategies, eventually introducing a seemingly lucrative crypto investment opportunity. The scam artists often boast about their own success or that of their associates to lure in their targets.
Once a victim is convinced, they are directed to a fake investment platform that looks just like a legitimate website. After creating accounts and transferring funds, victims are allowed to withdraw fake “profits” to bolster their belief in the platform’s authenticity. However, once a substantial amount is invested, the platform blocks withdrawals, locks the accounts, and vanishes without a trace.
To tackle this, the U.S. regularly employs asset forfeiture to reclaim assets from scammers, which can then be used to compensate victims. Federal law enforcement collaborates with international authorities to recover funds stashed in foreign jurisdictions.
As U.S. Attorney Jeanine Pirro put it, “Whether they are in our district’s streets or hiding behind a computer screen abroad, the United States will continue to hold fraudsters and grifters responsible.”
Stacey Moy, an FBI special agent in charge of the San Diego Field Office, emphasized that these cryptocurrency scams prey on vulnerable individuals, leading to devastating financial losses.
“We hope today’s announcement brings a measure of justice to the victims and serves as a reminder, the FBI will hold fraudsters accountable, no matter where they are located,” Moy stated. This recent order to reclaim $2.5 million marks another step in the U.S.’s ongoing efforts to seize stolen crypto funds.
Previously, on May 23, the DOJ revealed that the U.S. had seized over $868,247 worth of cryptocurrency from the operators of a similar scam. Back in September 2024, more than $6 million was recovered from overseas fraudsters involved in yet another crypto confidence scheme.
According to an April report, the FBI’s Internet Crime Complaint Center (IC3) received 149,686 complaints regarding crypto fraud in 2024, with losses amounting to a staggering $9.3 billion.
This represented a 66 percent increase in losses compared to the previous year, the agency noted. Older Americans, especially those aged 60 and above, were the most frequent victims, filing the highest number of complaints and experiencing the largest financial setbacks. Additionally, the report highlighted a 99 percent surge in complaints related to crypto ATM or kiosk scams.
These ATMs enable people to purchase cryptocurrency with cash, which is then sent to user-designated wallets. Scammers exploit this by impersonating legitimate institutions, such as banks or government agencies, to convince victims of false claims like hacked accounts or unpaid taxes. Victims are ultimately directed to deposit money via a crypto ATM, with the funds going straight into the scammer’s wallet and the transactions being irreversible.
Michael Nordwall, assistant director for the FBI’s Criminal Investigative Division, pointed out that cryptocurrencies are becoming increasingly appealing to criminals within the global financial system.
He emphasized that “the decentralized nature of cryptocurrency, the speed of irreversible transactions, and the ability to transfer value around the world make cryptocurrency an attractive vehicle for criminals while creating challenges to recover stolen funds.” Once a payment is sent, the recipient gains full control of the cryptocurrency, often transferring it to overseas accounts for cash-out purposes.
Erica Carlin is an independent journalist, opinion writer and contributor to several news and opinion sources. She is based in Georgia.