Key conclusions

• This $3.4 million scam shows how today’s cryptocurrency scams are increasingly based on social engineering rather than technical exploits.

• The scammers used a gradual grooming process, engaging victims in affable conversations over time to build emotional trust before initiating any financial discussion. It closely resembled the pig butchering model.

• The investment pitch combined Ether’s growth potential with the perceived stability of gold. This created a compelling but false narrative that convinced victims that they were gaining access to an exclusive, low-risk opportunity.

• Victims were told to purchase Ether themselves on legitimate platforms and transfer it to shared wallets. This gave them a false sense of control and legitimacy.

This scam didn’t start with a phishing link or a hacked wallet. It started with a straightforward message: “Sorry, wrong number.”

According to US prosecutors, the interaction turned into a social engineering scheme that defrauded victims of millions of dollars and led to the seizure of $3.4 million in tonnes of United States dollars (USDT).

From innocent messages to multi-million frauds

Federal prosecutors in Boston have initiated civil forfeiture proceedings to recover approximately $3.44 million USD in connection with suspected investment fraud on the Internet.

According to authorities, the funds were seized in early 2025 as part of an investigation launched in tardy 2024 following complaints from victims in multiple U.S. states who reported significant financial losses.

The operation did not involve sophisticated technical feats. Instead, he relied on a well-known but extremely effective tactic: social engineering. Scammers took advantage of ordinary, everyday interactions to defraud unsuspecting victims.

Victims received text messages or chat messages that appeared to be sent in error. The fraudsters used applications such as WhatsApp and Telegram to send these messages.

On the surface, the communication seemed completely normal. There was no pressure, no immediate request and no clear warning signals.

The lack of obvious danger is one of the reasons this method can be so effective.

Unlike cryptocurrency scams, which raise immediate suspicion, the “wrong number” approach:

• It seems natural and socially appropriate

• Encourages polite responses

• It creates an opportunity for continuous dialogue

In this case, as in similar ones, what initially was an apparent mistake quickly turns into an opening for further contact.

Care stage: Gradual building of trust

After the initial exchange, fraudsters avoid rushing the process. They build trust gradually through affable conversations, sharing seemingly personal information, and maintaining a consistent, credible personality.

Instead of introducing financial topics too early, scammers:

• Create a sense of emotional ease

• Make regular communication seem normal

• Maintain the appearance of a real personal relationship

This strategy falls under a broader category of fraud, commonly known as pig robbing, in which victims are methodically “groomed” before being targeted for financial gain.

Before money is a topic of discussion, victims often believe they are dealing with someone they know rather than an unknown scammer.

Did you know? The “wrong number” scam technique evolved from earlier email scams in which fraudsters pretended to contact the wrong person. Messaging apps have made this tactic more effective by enabling casual, real-time conversations that feel more genuine.

Subject: counterfeit ether investment linked to gold

After building initial trust, the scammers subtly steered the discussion towards lucrative investment opportunities. Victims were presented with what appeared to be a privileged ether investment opportunity (ETH), allegedly tied to specific gold holdings.

This combination appears to have been intentional.

Connected:

Together, these elements created an attractive narrative: the promise of significant returns while minimizing perceived risk.

Victims were told they had access to a infrequent, exclusive opportunity that was not available to the general public.

Transaction method: Why victims bought Ether

Instead of requesting direct transfer, fraudsters instructed victims to:

1. Buy Ether through verified, legal exchanges

2. Send your purchased Ether to designated wallet addresses

This approach had a significant psychological impact.

Victims felt reassured because:

• He made transactions on original, well-known platforms

• I personally handled and authorized the purchase

• They could observe and verify funds in their own wallets before transferring

As a result, the entire process was never a direct transfer of money to the fraudsters. Instead, it felt like genuine participation in a legitimate investment opportunity.

Did you know? In many fraud cases, fraudsters appear to be working in organized groups using scripts. Some teams specialize only in the “conversation phase”, while others deal with cryptocurrency transactions, which shows how up-to-date frauds are structured like a business operation.

What happened after the Ether transfer

After victims sent their ether to scammers:

• The funds were routed through various intermediary wallet addresses

• They were then converted into USDt, a stablecoin pegged to the US dollar

• Ultimately, the stablecoins were moved to unhosted wallets controlled by the perpetrators

This sequence is designed to:

• Hide transaction path

• Disconnect funds from their original source

• They significantly complicate recovery efforts

Nevertheless, blockchain records combined with investigative tools helped authorities trace the trail of money. Ultimately, the trial ended with the confiscation of property.

Part of a larger fraud scheme

This accusation is part of a broader wave of cryptocurrency fraud cases. Authorities across the United States have taken action against pig slaughter scams and romance scams. They have also launched actions to combat stablecoin laundering operations.

Common features appear in all of these events:

• Initial contact via social media, dating apps or informal platforms

• A tardy, deliberate process of building trust

• A turn towards the “investment” possibilities of cryptocurrencies

• Funds transfers in tiered transactions

While the specific methods and technologies may vary, the intent and strategy remain consistent.

Did you know? Cryptocurrency scams often apply multiple blockchains to move funds, not just one. Once assets are converted into stablecoins, fraudsters can connect them across networks, making tracking and recovery even more complex.

Why this scam worked

The main reason for the success of these schemes is that they are rooted in psychology rather than any technological flaw.

The perpetrators did not exploit loopholes in the system itself. Instead, they targeted and manipulated predictable patterns of human behavior.

Several key psychological elements contributed to this:

• Politeness attitude: People tend to respond politely even to messages that seem random.

• Trust formation: Constant, repeated contact creates a growing sense of familiarity and comfort.

• Perceived control: The victims personally handled the purchase and transfer of funds.

• Credibility: Combining the cryptocurrency’s promise of rapid growth with gold’s time-proven stability gave the proposition greater credibility.

By the time the fraud was discovered, the victim was already deeply involved emotionally and financially.

The legal answer: move from seizure to lasting forfeiture

The United States government initiated a civil forfeiture proceeding to recover the confiscated property.

Through this legal mechanism, authorities can:

• Confirmation of ownership of property suspected of being related to criminal activity

• Obtain court permission to permanently confiscate this property

• Give victims or other third parties the opportunity to make valid claims to property

Unlike criminal proceedings, civil forfeiture proceedings focus on the assets themselves and do not necessarily require a criminal conviction.

Warning signs you should recognize

These types of scams tend to have well-established patterns. Essential warning signs to look out for include:

• Unsolicited messages allegedly sent in error

• Rapid development of relationships and trust among previously unknown people

• Discussions that gradually turn towards investment proposals

• Promises of exclusive access or guaranteed high cryptocurrency profits

• Instructions for sending funds or cryptocurrency to external wallet addresses

Any investment proposal that comes out of a random conversation should be approached with the utmost degree of skepticism.

What to do if you receive similar messages

If you receive an unsolicited message about a lucrative cryptocurrency investment, you should:

• Refrain from responding to or engaging with unknown contacts

• Resist the urge to continue the conversation to simply be polite

• Never send money or cryptocurrencies to wallet addresses provided by strangers

• Block and report suspicious phone numbers, accounts or profiles instantly

• If any funds have already been transferred, please notify law enforcement and the appropriate platforms or exchanges immediately

Acting quickly can sometimes augment the chances of your funds being traced or frozen by authorities.