US seizes $8.2 million linked to 'Romance Baiting' scams

The United States Department of Justice (DOJ) has seized over $8.2 million in USDT (Tether), obtained through 'romance baiting' scams.

See also: Romance scams cost Americans $697.3 million last year

This form of financial fraud, previously called 'pig butchering', involves misleading victims into investing in fake websites/apps that promise huge returns.

Convinced that they are making a profit, victims invest larger and larger amounts, but when they try to make significant withdrawals, they encounter various problems that prevent them from completing the process. Eventually, they realize that they invested in a fake platform and all their money ended up directly in the pockets of the malicious actors.

Blockchain analytics platform TRM Labs reports that US state investigators, most notably the FBI, have uncovered money laundering patterns associated with ‘romance baiting’ operators, allowing them to file a dual legal seizure:

• Wire transfer fraud (18 USC 981(a)(1)(C)) for readily traceable funds.
• Money laundering (18 USC § 981(a)(1)(A)) for funds that are merged or untraceable.

See also: Interpol – The term used for online scams will change to “Romance Baiting”

This allowed for the full seizure of the assets. As stated in the complaint, Tether Limited froze the funds in June 2024, destroyed the original USDT tokens, and re-released them to wallets controlled by law enforcement in November 2024.

The seizure paves the way for compensation for known victims, as well as others the FBI is trying to identify through retroactive tracing of the seized wallets.

The complaint names five victims from Ohio, Michigan, California, Utah and North Carolina, who collectively lost over $1.6 million. A total of 38 cryptocurrency accounts to have been victimized, with losses exceeding $5.2 million.

The sinister group behind this 'romance baiting' operation is believed to be linked to human trafficking in Cambodia and Myanmar.

The fraud operation relied on common tactics, such as allowing initial small withdrawals of profits to build trust, citing “tax” and “debit” charges as pretexts for demanding more money, and then using threats and intimidation when victims ran out of money.

See also: Interpol: Dismantles human trafficking operation

Protection from romance baiting scams

To protect yourself from these scams, follow the tips below:

1. Don't send money to someone you just met: If someone you've met online asks for money, this is a serious sign that it's a scam.
2. Don't develop excessive emotional attachments quickly: Scammers often try to quickly create strong emotions to gain your trust.
3. Pay attention to “suspicious” elements in their story: If the person’s story seems unclear or full of contradictions, it may be an indication of fraud.
4. Don't give out personal information: Avoid sharing excessive personal information (such as address, phone number, financial details, etc.) with people you only know online.
5. Check their photo and social profiles: If something seems suspicious, do a Google search for their photos or name to see if they have been used elsewhere or if they are part of a known scam.
6. Consult friends or family: If you have doubts about someone, consult someone you trust.
7. Reporting to competent authorities: If you suspect that you have been a victim of “romance baiting”, it is important to report the incident to the police or organizations that specialize in combating online fraud.

Source: bleepingcomputer