Federal prosecutors, Federal Bureau of Investigation agents and a William Jewell College cybersecurity professor are highlighting multiple warnings for the public after a multimillion-dollar cryptocurrency scam. The U.S. Attorney’s Office in Kansas City on Wednesday announced the seizure of more than $325,000 in cryptocurrency linked to a fraudulent online investment platform that cost a Missouri victim more than $16 million. At least two other victims had money stolen, too, according to court documents.Those documents allege scammers used social media sites including LinkedIn to lure victims with promises of high returns and low risk on a fake cryptocurrency platform called Triangular.After initial investments, victims were shown fake profits and pressured to send more funds.Attempts to withdraw money were met with demands for additional fees.“If you do a Google search and you can't find anything on the investment platform, that's a red flag,” said Assistant United States Attorney John Constance. Constance talks to community groups often about investment schemes where scammers build confidence with victims.“It all comes down to developing trust with the victim,” Constance said. Once that trust is built, that’s when scammers strike. “Legitimate investors have to be registered with the SEC,” he said. “Confirm that what they are leading you to actually is a real investment opportunity.”FBI supervisory special agent Derek Wingle says if an investment sounds like it has no risk, that’s not reality. “Fifteen minutes of research could save people hundreds and hundreds of thousands of dollars,” Wingle said. “I would caution anybody to do their research ahead of time and do their due diligence before they send any funds to anybody that they haven't met or know from an in-person visit.” Nick Gicinto, William Jewell cybersecurity professor of practice and chief information security officer, identified the scam announced by federal authorities on Wednesday as “pig butchering.” Gicinto said scammers will treat a victim, just like livestock, fattening them up with flattery or romance schemes to get them to trust the scammer. Then, scammers go in for the kill to steal their money. “Victims aren't necessarily going to have cryptocurrency accounts when they begin as the victim,” he said. “They are coached and encouraged to create one. And it's not hard to create one.”Gicinto said unsolicited outreach on social media is the number one red flag to pick up on similar scams.The FBI traced the seized funds to two cryptocurrency addresses allegedly used to launder millions between July and October 2024.The forfeiture hearing is set for Aug. 6. If you believe you are a victim of a similar scam, the FBI encourages you to reach out to its Internet Crime Complaints Center. The U.S. Attorney’s Office also has a platform to report crime.
KANSAS CITY, Mo. —
Federal prosecutors, Federal Bureau of Investigation agents and a William Jewell College cybersecurity professor are highlighting multiple warnings for the public after a multimillion-dollar cryptocurrency scam.
The U.S. Attorney’s Office in Kansas City on Wednesday announced the seizure of more than $325,000 in cryptocurrency linked to a fraudulent online investment platform that cost a Missouri victim more than $16 million.
At least two other victims had money stolen, too, according to court documents.
Those documents allege scammers used social media sites including LinkedIn to lure victims with promises of high returns and low risk on a fake cryptocurrency platform called Triangular.
After initial investments, victims were shown fake profits and pressured to send more funds.
Attempts to withdraw money were met with demands for additional fees.
“If you do a Google search and you can't find anything on the investment platform, that's a red flag,” said Assistant United States Attorney John Constance.
Constance talks to community groups often about investment schemes where scammers build confidence with victims.
“It all comes down to developing trust with the victim,” Constance said.
Once that trust is built, that’s when scammers strike.
“Legitimate investors have to be registered with the SEC,” he said. “Confirm that what they are leading you to actually is a real investment opportunity.”
FBI supervisory special agent Derek Wingle says if an investment sounds like it has no risk, that’s not reality.
“Fifteen minutes of research could save people hundreds and hundreds of thousands of dollars,” Wingle said. “I would caution anybody to do their research ahead of time and do their due diligence before they send any funds to anybody that they haven't met or know from an in-person visit.”
Nick Gicinto, William Jewell cybersecurity professor of practice and chief information security officer, identified the scam announced by federal authorities on Wednesday as “pig butchering.”
Gicinto said scammers will treat a victim, just like livestock, fattening them up with flattery or romance schemes to get them to trust the scammer.
Then, scammers go in for the kill to steal their money.
“Victims aren't necessarily going to have cryptocurrency accounts when they begin as the victim,” he said. “They are coached and encouraged to create one. And it's not hard to create one.”
Gicinto said unsolicited outreach on social media is the number one red flag to pick up on similar scams.
The FBI traced the seized funds to two cryptocurrency addresses allegedly used to launder millions between July and October 2024.
The forfeiture hearing is set for Aug. 6.
If you believe you are a victim of a similar scam, the FBI encourages you to reach out to its Internet Crime Complaints Center. The U.S. Attorney’s Office also has a platform to report crime.
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